On Friday, frazzled investors were desperately hoping that gains in the Dow and S&P might signal that the stock market had started to stabilize.
If the S&P 500 ends higher, it will be the index's first two-day winning streak since July 21-22. It had fallen for 11 of the past 14 sessions.
And even a little tranquility would be a welcome relief for investors who have struggled with gut wrenching volatility, since Monday.
In fact, the volatility in the market made history. For the first time ever the Dow moved 400 points every day for 4 consecutive days.
How should you navigate the market’s nauseating swings?
Instant Insights with the Fast Money traders
All of our pros suggest lightening up into the week end. “After the week we had – you have to trim losses and take gains,” says pro trader Steve Grasso.
”Trim it and hedge it, adds trader Pete Najarian. “That the only way to approach it.”
From the floor of the NYSE, Grasso tells us that 1172 is a key level to watch. It’s the closing level on Tuesday of this week and Thursday. If the market slips, how it behaves at that level should be considered a ‘tell.’
And another move lower would come as no surprise to Pete Najarian. He's spotted a few signs in the fiancials that he worries could be leading indicators. They follow:
- Bellwether and Dow component Goldman Sachs traded lower on the same day the Dow Average traded higher by triple digits.
- Also, he doesn’t like the technical action in the chart of Morgan Stanley. “It looks broken” he says.
- And the XLF which is the ETF that tracks the financial sector struggled to stay above 13. “Even JPMorgan has started to drift,” he says.