Seven Reasons Why the Bears Might Be Right

The stock market is poised at one of those very scary inflection points.

From here, it could fall another 3% on the Dow Jones Industrial Average or another 8% on the Nasdaq Composite. Or it could rally back to its March highs for a gain of 8% on the Dow or 13% on the Nasdaq.

Which will it be? Lower prices and more gloom? Higher prices and smiles?

News events that we can’t now predict will certainly have a big role in settling the question. But I think I can make a strong case that we’ve got a 3% to 8% decline ahead of us before we can start looking for an end to this punishment and the beginning of the next temporary rally.

TheStreet