Kerr said the smart money, bottom fishers and bargain-hunters will likely start buying at 9,000.
Government officials, however, have indicated that they think now is a good time to jump in and took to the airwaves in an effort to turnaround market sentiment.
On Friday, Minister of Finance Paul Chiu (邱正雄) said the government was prepared to use its NT$500 billion market stabilization fund to begin buying stocks.
But Chiu's statement, instead of calming the market, could wind up increasing anxiety.
Li described the statement as "a gesture to prevent the market from falling further.
"But the effect might be negative," she said. "People will interpret it as negative. It points outs that the market needs some correction."
She also called into question the government's motives, saying the stabilization the stock market fund provided was to the KMT in the run up to the presidential election.
The announcement's timing also raised some eyebrows, as Chiu's comments came after the government bought shares Friday and Thursday.
Kerr said the government used four funds it controls to buy an estimated NT$2 billion in stocks.
"They've already engaged in buying," Kerr said.
Despite last week's drop, foreign institutional investors haven't been shy about buying, though the pace has slowed considerably compared to earlier this year.
For the week, these investors purchased a net NT$6 billion. For the month, the figure is NT$45 billion.
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