You might be asking yourself, why in the world did the market get hit in the Nuts Act today Dow Falls Nearly 300 points as banking sector concerns. weak China Dater overhang Regional Banks slide after Fed's Kashkari Advocates significantly further Capital Regulation So you're thinking to yourself, okay, we've been battling inflation. We know what's going on with Regional Banks We're getting weak numbers out of China There's no way it got worse. Oh yeah, no, no, it 100 did.

Fitch Warns: it may be forced to downgrade dozens of banks, including JP Morgan Chase And that's notable because it's literally the biggest bank in the entire world. Bitch Ratings: Cut its assessment of the banking industry's Health in June a move that analyst Chris Wolf said went largely unnoticed because it didn't trigger downgrades on banks. So the argument here is: if you have a large Bank operating in an economy that doesn't have the maximum credit worthiness like the AAA rating, if it gets downgraded to double A minus. Inherently, that means that the largest bank itself can't have that maximum rating.

But another one notch downgrade of the Indus score from double A minus to a plus would force Fitch to reevaluate ratings on each of more than 70 U.S banks it covers. In this situation, we have weak numbers coming out of China the consumer over there very very weak within the Us. Obviously, we've been battling inflation. We know what? Recently, a couple months ago went on with regional Banks where we had some of the biggest blow-ups in U.S history.

And then all of a sudden you add in the downgrade of moodies of the U.S credit worthiness as like the government, not an individual in bank. And then that rolls into this situation where Fitch is saying uh oh, we might have to downgrade some of the biggest banks. It's just a really, really bad mixer right now. So when all this was coming on and it all kind of came in together because obviously when it rains, it pours.

That's exactly why you get a day that looks like today when the market just got absolutely rocked. We had a bit of a recovery yesterday Monday August 14th, but today Tuesday we made a fresh low. In fact, we haven't been at this level since mid-july So basically we're giving back A month's worth of action if you're asking me. I don't have a crystal ball.

My crystal ball is out being repaired right now. so this is just one man's opinion 50 of the time I'm right 100 of the time if we don't quickly recover Above This level the next major zone of report is going to be just below 440 as we're trading at 442.43 So that's what I'll be looking for. But yes, we broke the start of the week slow. Monday We broke last week's low the low from Friday and I'm not seeing any buyers step in right now.

You could argue from an economic standpoint, there's good reason for it Once again, weak. I Guess inflationary impact or weakness across the board because of inflationary impact in the US And right now, the newest way that it's showcasing itself is the fact that we're seeing downgrade. We did see a major one from Moody's and we now might be seeing additional ones from Fitch. And the Fomc members are fed members are not making this situation better whatsoever.

So that's the situation for right now in the very short term. I I'm looking for the Bears to finally have a little bit of a win here because the Bulls have been winning for March I'm not calling for doomsday I Think it's silly to call for doomsday, but right now it's hard to really be a bullet in the short term. If you're a swing Trader or a day trader, be careful catching a knife because that's a perfect way to get stabbed.