Morgan Stanley’s Mike Wilson says a near-term correction for shares is “extremely possible.”Bloomberg/Getty ImagesSpeaking late Monday on Bloomberg Tv, Wilson famous the focus of positive factors in tech, and he successfully caught to his spring goal name for the S&P 500, suggesting the “probability of upside from now till 12 months finish could be very low, a lot decrease than regular.”Morgan Stanley’s Wilson: Correction coming“I feel the prospect of a ten% correction is very possible someday between now and the election,” Wilson mentioned, including that buyers are prone to endure a “uneven” third quarter heading into the November presidential choice.Second-quarter earnings are prone to show essential for the market’s near-term efficiency, with JP Morgan (JPM) , Wells Fargo (WFC) and Citigroup (C) kicking issues off on July 12 with the primary set of blue-chip updates.Associated: Nvidia inventory pullback has markets on edge for S&P 500 correctionFinancial-sector earnings, nevertheless, prone to contribute solely round 18% of the S&P 500’s anticipated earnings tally of $495.2 billion, in line with LSEG knowledge. The majority of the positive factors are forecast to return from info know-how and communications companies.That degree of focus, which has outlined the S&P 500’s year-to-date acquire of round 17%, was additionally cited by Wilson as a consider his still-bearish outlook.Story continues”The typical firm has not had good earnings outcomes,” Wilson mentioned, including that “valuations to me look very unexciting.”FactSet knowledge, in truth, counsel that shares are buying and selling at traditionally wealthy valuations, with the ahead price-to-earnings a number of of the S&P 500 pegged at 21.2, in contrast with the five-year common of round 17.2.The bullish bear: A ten% drop = opportunityIn the first-quarter earnings outcomes, shares from IT and communications companies contributed round 32.8% of the S&P 500’s $472.1 billion in earnings, up from round 27% over the three months led to December.Wilson’s S&P 500 worth goal of 5,400 factors nonetheless places him on the bullish aspect of Wall Avenue, the place the median year-end forecast for the benchmark sits at round 5,250 factors.Extra Wall Avenue Analysts:Actually, the strategist sees worth in high-quality progress shares. He suggests buyers give attention to particular person names with sturdy steadiness sheets and a monitor document of earnings progress fairly than a passive index technique, as he waits for the approaching correction.“In the event that they have been to return in 10%, then we might in all probability get once more,” Wilson mentioned.Associated: Veteran fund supervisor sees world of ache coming for shares