"If I read the stock market correctly, it's telling me that there is a surprise ahead," Richard Russell wrote. "And that surprise will be a reversal to the downside for the economy, plus a collection of other troubles ahead."

"Do your friends a favor. Tell them to “batten down the hatches” because there’s a hard rain coming," Russell warned.

"Tell them to get out of debt and sell anything they can sell in order to get liquid. Tell them that Richard Russell says that by the end of this year they won’t recognize the country. They’ll retort, ‘How the dickens does Russell know—who told him?’ Tell them the stock market told him."

Russell said he has seen problems with the Dow since April

"If business is even better than expected, then why is the Dow down over 600 points?"