The start of a market pullback?

In case anyone was wondering what the next market correction will look like, “this is it,” according to one financial adviser. Paul Schatz, a tactical adviser and money manager who is president of Heritage Capital LLC, said that recent stock market volatility is indicative of the pullback that he has been calling for and thinks is necessary. “We have been looking for a short-term pullback for several weeks,” he said. “I do not believe the bull market is over, and I don't think this decline will become anything serious, at least not yet.” The Dow Jones Industrial Average, which has hit several record highs over the past few weeks, had several swings of 100 points or more last week. The blue-chip average is hovering around 14,580, representing a gain of more than 11% from the start of the year. “This should be your typical, healthy and routine 4% to 8% pullback,” Mr. Schatz said. “I continue to view 15,000 as the ceiling and 13,700 as the floor for a while.” When market indexes fell last week, blame was laid on some disappointing earnings results, said Joseph Witthohn, vice president of product development and exchange-traded-fund strategies at Emerald Asset Management. But “it might just be that investors are taking a back seat and waiting for more-definitive signs of economic improvement,” he said. “Some people seem to be waiting for a bell to ring that gives the signal that all is clear, but many of those who are waiting to hear it missed the run-up in recent years,” Mr. Witt-hohn said. “I only hope they don't strain too hard this time to try to hear its friendly clang, because the bell does not exist.” [email protected] Twitter: @jeff_benjamin