Fundstrat’s global head of technical strategy Mark Newton believes recent market turbulence is showing signs of stabilization after two months of significant damage.

“There is some evidence that equities have in fact made a bottom and/or are in a bottoming process,” he said in an interview with CNBC, pointing to washed-out market breadth and extreme downside volume dispersion.

Newton emphasized that technology stocks and financial sector earnings provided encouraging signals, with the Magnificent Seven showing notable recovery off recent lows. However, he cautioned that any recovery would likely follow an “L-shaped” pattern rather than a V-shaped rebound, predicting sideways movement for 30-60 days before a larger rally emerges. 

"We're likely trying to put in some type of a low," the analyst told the financial news network, but cautioned that "there has been a lot of damage done."

"This is not gonna be a quick move back to new highs," he said. "This is gonna take time."