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Stocks needed to move toward the upper end of that range to avert a correction, he added.
"It is vital that you stay not only in the channel but get back to the top of it," Worth said. "If we go back to the bottom trend, it has all the hallmarks of losing steam, and we're only 1 percent from the bottom of the channel now.
"We think it's not good."
Worth noted that most investors were still bullish because "the premise is there's nowhere else to go."
(Read more: 'I want to have cash' this week: Stephanie Link)
In the Russell 2000, Worth also noted that stocks were 12 percent above its 150-day moving average.
"When you're 12 p or higher, again, the risk/reward is asymmetrical," he said. "You get limited gains and you have all sorts of downside risk."
— By CNBC's Bruno J. Navarro. Follow him on Twitter
— CNBC's Michael Newberg contributed research to this report.