Wall Street is breathing a sigh of relief after the S&P 500 Index managed to eke out its first weekly gain of the year. Despite the signs of strength, one prominent market watcher says stocks are still in store for a "thundering reset."

"I think we have a dead cat bounce in no-man's-land," David Stockman told CNBC's "Fast Money" last week. According to Stockman, the broad market has been trading in the abyss since breaking above 1,870 in 2014, seeing a meager 1 percent return since then.

"We're been there now for 700 days…we've had something like 35 attempts at rallies and all of them have failed for what I call the "four no's"," he added.

For Stockman, those "four no's" consist of a combination of no escape velocity, no earnings growth, no dry powder from the central banks and no reflation. Taken together, it leads him to believe the U.S. economy is on the cusp of a full-blown recession.

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"We're getting to a point where the chickens are coming home to roost. There's no help from the central banks and that's why these rallies are getting weaker and weaker and shorter and shorter," said Stockman, who was the former OMB Director under President Ronald Reagan.