US stocks could be headed for “minor correction” but “buy the dip”

Markets were mostly little-changed on Tuesday.

The S&P 500 rose 0.1 percent to eke out another record high but the STOXX Europe 600 was flat. The Shanghai Composite rose 0.5 percent.

“We’re near all-time highs, and investors are waiting for a catalyst to drive the market in the second half,” said Patrick Healey president of Caliber Financial Partners.

Tony Dwyer, equity strategist at Canaccord Genuity, thinks that the market could take a dip first before heading higher.

Dwyer wrote in a Tuesday research note that “the tactical backdrop continues to suggest a minor correction in the near term, with any drawdown limited to 5%”. He added that such a pullback would be “an opportunity to add exposure in the Info Tech, Financial and Industrial sectors”.

Similarly, Citigroup investment strategist Robert Buckland suggested that there are few signs of a bear market and that investors should “buy the next dip”.