The S&P 500 index is likely to correct down to the low of 677 hit on March 5 2009, Bill McLaren, independent trader, said on Friday.
But the decline will be interspersed with counter-trend rallies" which usually last two to four trading days, he added.
McLaren told CNBC he sees the broader index reaching 960 on March 1.
"The rally up from the next major low will be the bull market top and it might just be a retest and then the index will trend down into 2012," he said.
We are in a five-year bear cycle which will top in 2010 to be followed by a two-year bear trend like in the 1930s and 1970s, according to McLaren.
"The concern for the debt of Portugal and Greece is not the real problem," McLaren said on 'Squawk Box Europe'. "The real problem is this consensus building that deficits must now be reined in."
The S&P suffered the worst day since April 20, 2009 on Thursday.
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Traderone: Now the fear factor is being introduced to the market and more such fear factors will be reported. Otherwise how to bring the market down?
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