Andy Bohuslavizki Irvine
Once the Dow Jones industrial average hits 20,000, don’t expect momentum to power it even higher, market strategist Paul Schatz told CNBC on Thursday.
In fact, it’s “a rally you can sell,” the president of Heritage Capital said in an interview with “Closing Bell.”
Stocks ended lower on Thursday, with the Dow Jones industrial average down about 63 points at 19,891.
The market has rallied since President-elect Donald Trump‘s victory in November, with investors pinning their hopes on tax cuts, less regulation and a pro-growth environment.
However, it has been going sideways for a month, Schatz pointed out.
“That shows we’ve got underlying strength,” he said. “The rally’s been on less stocks participating the last couple of weeks. We need a little bit more consolidation, digestion, maybe into halfway through earnings season.”