A "range-bound" market could soon swing more dramatically, and an "overshoot" may send stocks 10 percent lower in the coming months, Mohamed El-Erian said Thursday.
"Don't be surprised if you see a 5 to 10 percent move the other way, because that's what we've been having actually for a while now," the Allianz chief economic advisor told CNBC's "Fast Money: Halftime Report."
El-Erian said a market dip is not a certainty. But he noted, regardless of which direction stocks go, he expects they will trade in a wider range than they have in recent weeks.
His comments came as U.S. stock markets slid Thursday, with the major U.S. averages falling about 0.3 percent each. Oil prices also dipped.