Don't Buy on This Dip: Chief Strategist

With Tuesday's 200-point drop in the Dow Jones Industrial Average breaking its upward run, the markets are due for at least a 5 percent correction from their highs, said Scott Redler, chief strategic officer at T3live.com.

"[This] is not the dip to buy," Redler said.

"At this particular point, it seems like there will be more downside movement here, versus getting involved for potential upside."

Redler said the S&P 500 will likely move to its 50-day moving average near 1,158. But if other European countries receive downgrades, or if other Wall Street banks get questioned on Capitol Hill, it could move closer to its 200-day moving average near 1,100. REad more