Market needs a strong bounce-back or ‘all bets a

Market needs a strong bounce-back or ‘all bets are off’: strategist
Dick Dickson, senior market strategist for Lowery Research, says that if the market does not see some strong days ahead, it could be headed for a significant downturn.

Appearing on MoneyLife with Chuck Jaffe, MarketWatch senior columnist, Dickson noted that market sentiment seems to be more negative and that these “more acute” feelings, “looked at from a contrarian point of view, could be a relatively positive thing for the market.”

That said, Dickson said he was looking for “90 percent days,” when up volume or down volume makes up nine-tenths of volume. “Important market down days typically include a combination,” Dickson said, where 90% down days push the market down, and then 90% up days show that there is real demand — and not just a lack of sellers — to drive the market higher. He said the market could take a turn for the better with the Thanksgiving holiday approaching, but that the follow-through days of big demand will be the key, noting that they need to happen within a few days of the market’s turn.

“What we need to see is one or more 90% up days to tell us that the tide has turned,” Dickson explained. “If we don’t see a 90% up day — if we just get sort of a mediocre rebound over this — all bets are off; this market could just roll over again and go even lower.” http://blogs.marketwatch.com/thetell/2012/11/...trategist/