Back in July, Enzio von Pfeil, chief executive officer of EconomicClock.com, predicted a stock market crash in October. On Wednesday, von Pfeil reiterated his forecast, saying: "It doesn't have to be a calamitous crash. But I do think we're heading towards something. One sees that the market's become a lot more 'toppy'. It's stopped going up and up and up."
"One sees far too many players in the market that perhaps shouldn't even be there," he added.
One reason for a big selloff is likely to be strong downward earnings revisions occurring in the near future, von Pfeil said.
"There's going to be quite a bit of strong downward earnings revisions going forward, especially the outlook for 2010. And that's simply because the economic clock, of which we tell the economic time, suggests that the excess supply of goods (rising unemployment) is here to stay and you can't keep on making profits if unemployment keeps rising," he told CNBC.
