Market check: Stocks pare losses after early selling, U.S. dollar soars

Yahoo Finance market reporter Jared Blikre assesses the market and sector action in the day's final trading hour, as well as the U.S. dollar, ARK ETF components, the software space, and bitcoin prices.

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RACHELLE AKUFFO: Let's get you a quick market check, as we are about one hour away from the close. Now it started in very negative territory across the board. But as we can see, the major indices now mixed. We're seeing the Dow down just about a percent there. The S&P 500 down just over a 1/3 of a percent. And the NASDAQ the only one in the green right now, up over 130 points there, the tech-heavy NASDAQ. Well, let's get a deeper dive on what's happening with the markets with our very own Jared Blikre on the Yahoo Finance Interactive. Jared.

JARED BLIKRE: That's right. And we are turning around, and it is Tuesday. Let's get straight to the YFi Interactive, where we can plot the day's price action. And we're going to start with the NASDAQ. As you said, Rachelle, that is the leader today. In fact, the other two majors underwater. So is the Russell 2000, but just by a little bit. You can see we gapped down. We're down about 1% in some of the majors. And now we are in the green, from the lower left to the upper right.

On a longer term basis, still not looking like a huge drop in the bucket. But I think investors will take it. Also want to check out what's happening with the 10-year crashing, again, taking out lows here, the lowest amount, it looks like, in about five, six weeks, all the way down to 2.82% from almost 3.5%.

Also got to highlight the huge, huge action in the US Dollar Index. That is a giant candle for the US dollar. That is putting some pressure on a number of industries. And we're going to take a look at that in a second. But here is a max chart. This goes back to the 1980s of the US Dollar Index. We have taken out these highs. And we are screaming perhaps towards these 120 levels from decades ago.

Let's take a look inside the market at some of our heatmaps. And we see this is our Leaders Sentiment Index. What's notable here, Ark components having a really nice day. So are IPO stocks, Internet stocks, retail, software, homebuilders, biotech. Even cannabis, beaten down cannabis having a decent day here.

If we look at the sector action, it's the mega-cap sectors that are flying high. Communication services, consumer discretionary, and tech, those are all in the green. Everything else in the red. You can see energy, utilities, materials, all down materially. Energy down 5%. Crude oil having the worst day in weeks. And that has to do with that stronger dollar that we've been taking a look at.

Now let's take a look inside the ARK Innovation Fund. Everything in the green here. These are not all of the holdings, but some of the top ones. And you can see something similar in software. And in fact, if we go back 10 days, we can see software has been picking up rather nicely with a few exceptions, along with some of these Ark components. My point why I'm lingering on some of this is to illustrate that if we are going to get a rally, you want to look for pockets that are already showing signs of life. And that's what we have here.

Also going to be taking a look at crypto over the next two hours. This is over the last 10 days. Let's do the last day. And you can see after that weekend, another weekend of failures. Unfortunately, in crypto land, we did take a bit of a spill, below 20,000. But we are back up again. And let's take a look at a two-month chart real quick here. And you can see, we've just been tracing out a trading range, which is something that Bitcoin has been doing all the way down. So we did it here.

Are we going to do it again? Are we going to break out? Doesn't really-- I would say it's too soon to tell today, but we definitely have some levels to be looking at right here. And again, the downside target, the low-- current low $17,000, going to be about 13,000. We'll have to see what comes of it, guys.

DAVE BRIGGS: Sure will. Jared Blikre, thanks so much.