The S&P 500 just hit a level that could spark the next meltdown - Canaccord Genuity

CNBC reports that the stock market's three day win streak may be in jeopardy. Canaccord Genuity's Tony Dwyer warns the S&P 500 just hit a level that sets the stage for another meltdown as the country copes with the coronavirus impact.

"We put 2,575 as a level for this relief rally," the firm's chief market strategist told CNBC's "Trading Nation".

The S&P 500 is coming off its biggest three day gain since 1933. On Thursday, it closed up more than 6% to 2,630. However, it's still almost 23% off its record high.

Dwyer cites human nature of fear as the likely catalyst to interrupt the latest leg higher.

"Once you make a panic low, you typically have this relief rally," Dwyer said. "Unfortunately, the vast majority of time you go back down and test that low."

But his forecast isn't all doom and gloom. It carries optimism, too.

"You've already panicked, so down 34% at the low to say that it's going to get significantly worse is not the case," he added. "The time to be cautious was in January and February. We made the panic low. While we may test that low, it's not the time to get scared."

Dwyer, a long-term bull, has warned for weeks the coronavirus pandemic would spark a deep economic shock.