Why the Fed could be setting stocks up for a painful drop

Market watcher Dan Suzuki warns that correction risks are rising, and there's nothing the Federal Reserve can do about it.

"When the Fed has historically cut rates, unless you had some kind of combined effort from the fiscal stimulus side of things, it's been generally more of a bearish sign than it has a bullish sign," he told CNBC's "" on Wednesday. "All this emphasis on the Fed coming in on its white horse to save the day is probably a bit overdone."

"Even without a recession, if you think back to 1998, they [the Fed] started cutting about halfway down into what turned out to be a 19% correction in the market," said Suzuki."The last time the Fed started cutting rates was September 2007.... a month before the peak of the last bull market. And, then the time before that was about nine months into the tech wreck, so lagging the peak of the bull market," he added.

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