Wall Street bull says near-term pullback is coming

Despite all of the positive variables in the economy right now — including this year’s huge earnings growth and high consumer confidence and spending — Dwyer said investors should be cautious about entering the market at this moment, because the near-term view “stinks right now.”

“We’re overbought in a market where only 52 percent of stocks in the S&P 500 are above their 10-day (moving average), in a highly volatile year, which has been our plan all year,” Dwyer said.

Instead, he told market-watchers to wait for the dip to buy.

“This is not a sell,” he said. “This is a wait-to-buy.”

“We want to buy weakness instead of chase extreme strength,” said Dwyer, who calls himself a “raging bull.”

“And if you’re an extreme overweight tech… stay overweight, but just cut it back,” he said. “The price is giving you such an overweight, you take a few chips off the table there.”