Despite market jitters returning to send the Dow tumbling nearly 3 percent Tuesday, Fundstrat founder Tom Lee told CNBC he was preparing for a big upside swing.
"I think some things are underway now that are going to provide us the capability to make a pretty big move and therefore if you think a few months out this is going to prove to be a very good opportunity," Lee said during an interview with CNBC's "Power Lunch."
Pointing to performance in small caps and high-yield spreads, Lee saw comparisons to last year's late-October rally in which the Dow recovered about 10 percent of its value. In addition, market headwinds that have plagued energy companies and international corporations like cheap oil and a stronger dollar, respectively, could be letting up.
Seeing a weaker greenback returning in less than six months, Lee said, "What was really sort of a downside surprise becomes an upside surprise."