Image: CNBC's Ron Insana Defends Prediction of 20 Percent Stock Plunge
Television personality Ron Insana (Photo by Peter Kramer/Getty Images)

CNBC's Ron Insana Defends Prediction of 20 Percent Stock Plunge

Wednesday, 02 Apr 2014 12:16 PM

By Dan Weil

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CNBC contributor Ron Insana is standing by his call that the stock market is ripe for a correction that could push the market down 10 to 20 percent.

"While I have to acknowledge that, in the short term, that seems like a bit of a blunder, given the new intraday highs in the S&P 500, the transports and other major averages, I'm not sure it is prudent to back away from that call," he writes on CNBC.com.

Meanwhile, the Standard & Poor's 500 Index hit another record peak Wednesday.

Editor's Note:
75% of Seniors Make This $152,000 Social Security Mistake

Insana offers a host of reasons for a correction. First, technical indicators aren't that strong, he says. "Seasonal factors are about to turn negative, and geopolitical and global economic concerns are lingering."

In addition, "moves by regulators to slow down high-frequency trading could also affect the market at some juncture," Insana writes.

To be sure, he doesn't think the stock market is in a bubble. "I believe we are in a secular bull market that will last for several years to come, though this market remains stretched in the here and now."

Some market participants say stronger U.S. economic data will be necessary to push stocks much higher.

"We are in positive economic data territory but to continue to make new highs, we are going to have to see improvement, not just good, but great and that is why we are holding tight here," Art Hogan, chief market strategist at Wunderlich Securities, told Reuters.

Editor's Note: 75% of Seniors Make This $152,000 Social Security Mistake

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