After falling as much as 7.2 percent from mid-September highs, the is enjoying a healthy bounce on Tuesday. But Sterne Agee's chief market technician, Carter Worth, contends that this is not a dip worth buying—and once investors realize that, market psychology will change in a big way.
Over the past two years, buying shallow market declines has been a winning strategy. And even though this recent stock slide has been a bit steeper from prior declines in the market, many investors still appear to believe that buying now is the right call.
"We know that last week we had that huge ricochet day and it of course gave it back the next day. We know on Friday, which was a horrible day, at some point we were green. We know yesterday, we were green at one point, and then—as long as it keeps doing that, there's no way that it's over," Worth said Tuesday on CNBC's "Futures Now."
"Someone's in there thinking, 'Aha! This is an opportunity. Buying the dip's the right thing to do, it's served me over an over again.'"
Worth makes the point that that "until that psychology is broken, I don't think that this is different."
However, Worth ultimately thinks that those who rely on the past will be fooled into thinking the market is safe when it isn't.
A break in psychology is "ultimately what I think is coming," he said. "Enough people are going to get hurt where they're not going to play that game anymore."
In fact, Worth predicts that the S&P does indeed have further to fall—with history suggesting additional downside of up to 6 percent from Tuesday's open, according to a note he wrote to clients.