FXStreet reports that Citigroup’s Tobias Levkovich, the U.S. equity strategist, said in his latest client note that the U.S. indices, including the S&P 500, were primed for a 10% correction.

“A 10% pullback in US shares seems very plausible.”

“Our current caution reflects several factors, including ebullient sentiment readings, stretched valuation levels and slipping earnings revision momentum.” 

“With limited upside even to others’ bullish targets, a neutral stance is realistic.”

“The S&P 500 seen at 3,800 by the year-end.”

“While they can back off 10%-20%, we do not envision a 50%-plus collapse.”