There are three reasons why stock prices will go lower faster.
First, as what I have shared in an earlier post, many investors are sitting on the fence, waiting to become sellers when the markets become more bearish. Hence, there will be more selling of stocks to come.
And do you know what? With more selling of stocks per day, the magnitude of stocks heading south in percentage will automatically be higher. Why is that so? Well, it is because the stock price or index base is getting lower, hence for every one-point drop against a lower base, that one-point drop will result in a higher percentage point decrease.
In view of the above, it will become a cycle: investors sell, the percentage point decrease become magnified as a result of lower stock price base; investors may become more fearful and sell their stocks even more.
And that is why stock prices will go lower faster.
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