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Look for the S&P to Fall Below 600: Analyst

Wall Street has notched up its best six-week winning streak since 1938, helped by better-than-expected results from General Electric and Citigroup .

And Asian markets to a large extent, have been getting their cues from how U.S. stocks have performed. So are we setting ourselves up for a much larger correction, if and when a correction occurs, or have the internal dynamics of trading in the markets changed?

(View full Kirby Daley interview on the left)

"Well the internal dynamics have changed from last year ... it's very positive right now," Kirby Daley of the Newedge Group told CNBC. "But the fundamentals in the economy that will back up a sustained equity market rally here in Asia and around the world have not changed. This is still a bear market rally. It will end when equity markets in the U.S. begin to falter, and that will be sooner rather than later in my view," Daley adds.

Daley thinks the trigger for markets to pull back will be both in the form of earnings and economic data.

"We've had some good earnings, but every good earnings report that we've had actually has a dark cloud hanging over it. And at the end of the month we're likely to have some more severe economic news from the U.S. -- a reminder that unemployment ... it's really still there," Daley said.

Daley's outlook for the U.S. economy is quite grim.

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"The further we go up, the more we're setting ourselves up for further and harder falls later on. I do believe, very strongly, we have not seen the lows in the equity markets globally, I'm still looking for S&P to fall below 600 in the U.S.," Daley concludes.

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