TICK and NYA NYSE 2-Minute Charts

Markets have gotten hammered on Friday and today. On Friday, concern increased that a Fed rate hike may be coming sooner than expected after the jobs report, however, after today and looking back, the real fear is the banks. Keystone highlighted the trouble in Italian banks one month ago and the problem is festering creating contagion elsewhere. The weakness in European banks cascades to US banks today.

The selling was aggressive today. The TICK machine printed an uber negative -1400 print at 1:45 PM EST. The negativity and market selling is off the charts. Keystone bot index longs after the -1400 print. The expectation is that a rally should begin due to the off-the-charts negativity.

The pink bubble is a -1200 print, again, off the charts negative. As a reference, any TICK under -1000 is an uber low number where a rally will typically begin; this emphasizes how off the charts negative a -1400 print is. The blue circle at -1250, and then the brown circle at -1300 occurs for the exact stock market bottom at 2:30 PM at 9127. Stocks then rally from 9127 to 9263, 36 handles, in about 75 minutes.

The stock market is very erratic. A recovery and relief rally for stocks is dependent on the European banks so turn the computer on at 3 AM EST (8 AM London) in eight hours to see how the financials begin trading across the pond. If the banks stabilize, the stock market will stabilize. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.