History says the S&P is headed to 1,670: Technician

Stocks may be bouncing Tuesday, but if history repeats itself, the market is going way lower.

So argues technical analyst Todd Gordon. Gordon says the closest antecedent to the current stock market pain came in 2011, when it fell 21 percent from its high in May to its low in October.

"A lot of times, markets will repeat themselves," Gordon said. And if the market falls 21 percent from its all-time high in May 2015, that will bring the S&P 500 to about 1,670, he points out.

That level is "ultimately what we're going to target when this bounce is defeated," the technician said Friday on CNBC's "Power Lunch."

This might sound like an outlandish call — but it mirrored the method Gordon used to forecast crude oil in November. With oil trading at $40 per barrel, he predicted that it would fall to $26, based on the idea that it would repeat the 77 percent decline it suffered in the financial crisis.

Read MoreThe chart that says crude oil is going to $26

On Thursday, oil fell as low at $26.05, before rebounding somewhat in Friday and Tuesday trading.


Trades to Watch

Trader Bios


Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

Read more