Long-time money manager Bob Doll is warning investors that stocks could breach October's correction lows.
Doll, Nuveen Asset Management's chief equity strategist and senior portfolio manager, believes the Dow's 602 point Monday loss wasn't a fluke.
He suggests there were clues in the early November market comeback that virtually cut October's losses in half.
"We had the rally off the low, and it did not have a lot of confidence and conviction. Breadth wasn't great," Doll said on CNBC's "Trading Nation" on Monday. "This is the retest sequencing."
The Dow on Monday saw its worst day since Oct. 24. The and the tech-heavy Nasdaq also got beaten up — falling almost 2 percent and 3 percent, respectively. The drop pushed the Nasdaq back into correction territory.
Doll sees three major factors "haunting" the market: How long earnings will stay strong, whether the Federal Reserve will tighten interest rates too aggressively and the potential fallout from the U.S.-China trade war.
Doll, who is a long-term bull, contends the economic cycle is still positive for stocks. It's just a question of when Wall Street angst and volatility will subside.
"I don't think we're going to see a new high this year," he said. "We're going to bounce around with a lot of side-wise volatility."
Doll has a 2,800 year-end target on the S&P 500, about a 3 percent gain from current levels. He doesn't have an official 2019 target yet. However, he's urging investors to stay in the stock market through sharp downturns like this one.
"You've got to have some stomach, and go buy some," Doll said. "And, when they've had their big rallies, you can let some go. It's more of a trader's market."