The S&P 500 sank below the key level of 1,900, and traders now have their eyes on the 1,867 support level.
But we could very well be heading for 1,600, said Stephen Suttmeier, chief equity technical strategist at Bank of America Merrill Lynch Global Research.
"What happens if we start to lose 1,867? You can basically say if we do that we may actually have a top in place that's formed over last year," he told CNBC's "Squawk Box."
"If that happens, what does that count to? It counts to about 1,600. That's what it counts to on the charts," he said. "If you take the chart pattern there and project it down, that's the risk."
He noted that some market signals are indeed flashing signs of a top, and overhang is apparent in indicators of breadth, volume, trend, and high yield.