Market check: Stocks resume losses at open

Yahoo Finance's Jared Blikre reports on how markets opened on Tuesday after the previous session's dramatic sell-off and rebound.

Video Transcript

JULIE HYMAN: And so we are going to turn it on over to Jared Blikre. Jared, what are we seeing?

JARED BLIKRE: Yeah, [INAUDIBLE] Sozzi here. But let's go to the Wi-Fi Interactive first here. Big hammer candle yesterday on some of these markets. The NASDAQ-- everybody is noting that huge reversal off of that 5% low. You take a look at the Dow. It is a similar picture. You took a look at the S&P 500 right there with it.

So the big question is, is this the end of the selling? Are we ready to get back into rally mode? Of course, the Fed being a huge catalyst, we have to wait for that till tomorrow. Probably not going to see much in the way of anything meaningful today, but we are going to chop around quite a bit. Probably going to have that continued volatility because we are in a low liquid market situation.

And one of the trends I've been reading about and noticing-- and I'm also writing about this today and the potential for reversal-- is that retail investors were net buyers most of the year in heavy, heavy force, even on the declines. That stopped last Thursday. So there were net sellers Thursday, Friday. We had a big options expiration on Friday. Not going to get into the weeds on what it means to be short gamma. But nevertheless, we're in a situation now where markets have to chase momentum.

We have large players whether you're selling options, whether you're a CTA. There's a lot of reasons why the volatility is not going to abate. Let's go back to the Wi-Fi Interactive. I just want to chart the bond market real quick. Here's the 10-year T note yield. We can see that's up about two basis points. Also going to take a look at the five-year T note yield, and that is up 2 basis points as well.

And let's take a look at the NASDAQ 100. It looks like Apple is up-- excuse me-- Apple is down 2%. Amazon, Tesla, Microsoft, each of those are down more than 1%. So the bottom line-- I think until we see institutional capitulation, we're probably not going to be out of this just yet. Retail has capitulated, but we need the big players in Wall Street to also get a little bit more pain.

JULIE HYMAN: Oh. Oh, that sounds fun. All right, Jared Blikre. We're going to take a quick break. When we come--