According to CFRA's Sam Stovall, the S&P 500 is expected to experience a 5% drop due to unfavorable factors affecting equity prices. Stovall, a Wall Street veteran, highlighted the bearish setup in interest rates, inflation, and stock valuations as key contributors to the impending correction. With inflation still above the Fed's target and interest rates triggering the yield curve inversion, Stovall cautioned about the market's vulnerability. High stock valuations, especially in the tech sector, have raised concerns about a potential crash. Stovall emphasized the need for upward revisions to earnings estimates to justify current price levels. As tech stocks continue to dominate the market, many experts, including Stovall, have warned of a possible downturn, with some suggesting the market is the most overvalued since 1929. Investors are advised to exercise caution as market conditions are signaling a significant correction ahead.