Fairlead Strategies founder Katie Stockton said Wednesday that the S & P 500 could plunge as low as 3,200 before bottoming in the most calamitous outcome for the market. “I think worst-case scenario should be about 3,200, because that’s the secondary level below 3,500. It’s based on a very important Fibonacci retracement level. … So that to me seems like a natural place for this to end,” Stockton said on CNBC’s ” Squawk Box .” “But if we see signs of downside exhaustion that are long-term in nature before that, obviously we get vocal on that,” she added. All three major indices have suffered volatility this year as inflation, Russia’s invasion of Ukraine and Covid concerns have roiled the market. In recent weeks, investor fears over the Federal Reserve’s upcoming interest rate hikes and a turbulent earnings season have led to big sell-offs. All three major indices had modest gains as of mid-morning on Wednesday, as the market anticipates the Fed’s notes from its policy meeting earlier this month. The central bank’s meeting minutes are due out at 2 p.m. ET. Stockton said that she sees the market as a “cyclical bear” within a “secular bull.” “The cyclical bear has room for downside follow-through on the back of an oversold bounce,” she said. “We’re looking for perhaps a bottom to be established closer to September or October and based very simply on our indicators.” “We’re hoping to see some signs of a bottom there that are long-term in nature, but right now we just don’t have them,” she added.