Wall Street bears are roaring.
The Dow, S&P 500 and Nasdaq Composite have each fallen more than 5 percent to near correction territory this week as a tumultuous global selloff kicked off 2016. The Dow and S&P have now seen their worst start to a trading year in history, and one widely followed technician warns investors should prepare themselves for significant downside ahead.
"If this is going to be a bull market that continues overtime, then I think you could pull back to the breakout that occurred in 2013, which could take us toward 14,000 for the Dow and toward 1,600 on the S&P 500," Louise Yamada told CNBC's "Futures Now" on Thursday. "That would calculate to about 23 percent [from the high] which is a normal cyclical bear market."
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A move to those levels would account to a more-than-17 percent drop from the S&P 500's current level of around 1,945 and nearly 16 percent move lower than the Dow's current level of around 16,573.