Stocks close lower on tech sell-off, interest rate worries
Yahoo Finance's Jared Blikre breaks down how the market closed on Tuesday.
ADAM SHAPIRO: Back to Jared Blikre for his final thought.
JARED BLIKRE: Just wanted to take a look at where we are in the market and see what might happen on Tuesday, sometimes called Turnaround Tuesday. On the Y-Fi interactive, you can see another red candle for today. This is a three month chart of the S&P 500. The only good news I can see is that it was almost a 90% down day in terms of market breadth in the S&P 500, meaning 88% exactly of the stocks in the S&P 500 were down today. Usually when that happens, you see a little bit of a relief the next day.
It doesn't mean that we're going to stop going down for the week. But usually, you see at least a pause. And then sometimes you get a turnaround as well. Also, want to point to the bond market. I'm going to look at treasury futures. This is 10 year T note futures as opposed to the yield. So it's kind of inverted here. But this paints a better picture. So you can see the futures have been going down as yields have been going up. But here is a head and shoulders pattern that we see.
It's a very powerful technical pattern that a lot of analysts look at, a lot of chartists and technicians. And you can see, we have decisively broken to the downside. Now sometimes, come back up and test the prior breakout level. That's pretty far away. This is a five year longer term chart. But the direction is down. It's pretty clear right now. And conversely, the direction is up in yields.
ADAM SHAPIRO: All right. Thank you very much, Jared--