Global markets have been weakening technically and are poised to head sharply downward, "Gloom, Boom & Doom Report" editor Marc Faber told CNBC on late Tuesday.

Marc FaberOn "Fast Money," he stood by his call that stocks would fall 20 percent.

"Basically, I think QE3, which I think is unlimited, and bond purchases by the ECB bailout of countries have been largely discounted by the market, and the markets have been weaking technically, so I believe that we may have here quite a serious setback," he said.

Faber discounted the role of government intervention as a way to improve economic conditions.

(Read More: Marc Faber: Stocks Will Fall; Jim Rogers: China to Rise)

"We need less policies, not more policies," he said.

"I would love to see everywhere in the world, certainly in the Western world, government expenditures and government bureaucrats cut by minimum 50 percent," he added. "That would turn me very bullish."

Pressed for a place to put his money, Faber looked to Asia.

"If I had to really choose something, I might go for a rebound in Chinese stocks," he said, adding that he would play it through Shanghai (Shanghai Stock Exchange: .SSEC).

Last week, Faber told CNBC, "I just want to have a lot of cash because I think that within the next six to nine months we can buy just about anything 20 percent lower than it is now."

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Tuesday, on the 5-year anniversary of the Dow's (Dow Jones Global Indexes: .DJIA) record high close of 14,164.53, Faber said he was "actually surprised" the index was at 5 percent off that level "because if I look at the presidential candidates today, if Obama is elected, I think the Dow Jones should be negative-13,473, and if Romney gets elected, it should be minus-6,000."