If the S&P 500 fails to close above 1,905 points this Friday, then the next stop will be 1,770 with the possibility of a "major correction" to 1,570 by late November, according to Nomura strategist Bob Janjuah.
The index closed at 1,877 points on Tuesday evening after breaching the 2,000 point level in August. Some major wobbles for global equity markets have seen the bourse ease off its record highs but still manage to clock gains of 3.2 percent so far this year. Nomura's uber-bearish strategist predicts more pain ahead unless there's some major unexpected policy or sentiment shifts this week.
"If we see consecutive weekly closes below 1,905 then it would suggest to me that a very deep correction is under way," he said in a new research note on Tuesday.