The Standard & Poor's 500 index and Nasdaq composite average both closed well above their lows for the day. The S&P fell 9.14 points, or 0.7 percent, to 1,354.58. The Nasdaq dropped 11.56, or 0.4 percent, to 2,934.71.
Tchir expects the market to grow more volatile as traders track deadlines for indebted European nations to repay bond investors or raise cash. For investors who benefited from the recent rally, he said, "I think it's time to take money off the table." There's too much of a disconnect between the Dow's recent four-year high and European markets that are scraping three-year lows, he said.
European stocks rose into the close, recovering some earlier losses. Indexes in France and London closed down less than 1 percent after steep losses earlier.
In corporate news:
— Chiquita Brands plunged 28.9 percent after the banana purveyor reported first-quarter earnings that were far below the expectations of Wall Street analysts.
— Macy's lost 3.8 percent after the department store chain made an earnings forecast that fell below Wall Street projections.
— Walt Disney Co. rose 1.6 percent, the most of the 30 stocks in the Dow, after the whimsy-production conglomerate said its fiscal second-quarter earnings outpaced expectations.
Daniel Wagner can be reached at www.twitter.com/wagnerreports.
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