Canaccord's Dwyer Expects The Market To Retest Lows

Tony Dwyer of Canaccord Genuity said on CNBC's "Fast Money" that he expects the market to retest the lows, despite the sharp move higher on Monday. He explained that there are three phases of the crash environment, a panic phase, a multi-week relief rally phase and the retest of lows.

Dwyer thinks we're in the second phase now and he expects the market to trade lower and retest its lows. He used RSI index to find similarities with historical events. Whenever the market crashed and the index reached 22 as it did in March, a relief rally followed, said Dwyer. After the rally, S&P 500 retested the lows in median 28 days later. Half the time it broke the low marginally and in other three times it came within 4% of the low.