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

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Stocks need to recover decisively by Friday to avoid tripping a sell signal, 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, she said.

The S&P 500 plunged close to 3% on Wednesday after the Federal Reserve struck a hawkish tone at its meeting.