The market plunge will trigger dormant sell signals if stocks don't recover 'dramatically,' technical analyst warns

Adobe Firefly, Tyler Le/BI

• Stocks need to recover decisively by Friday to avoid tripping a sell signal, analyst Katie Stockton said.
• If certain technical indicators flash, it would hint at a 10% correction, she wrote.
• Yet, seasonal strength could help stocks recover quickly.

Investors are wading back into the stock market after staging a spectacular retreat on Wednesday, but trouble could still lie ahead.

According to Katie Stockton, the magnitude of...