Yahoo Finance's Jared Blikre breaks down how markets opened on Monday.
BRAD SMITH: Welcome back to Yahoo Finance Live, everyone. Weak data out of China is the main catalyst for the market moves that we're seeing this AM. We are mixed right now. The NASDAQ has snuck its way into positive territory. Right now flat, just barely to the upside there. Let's get on down to the New York Stock Exchange floor, where Yahoo Finance's Jared Blikre is standing by. Jared, great to see you. What are you seeing on the tape early this morning?
JARED BLIKRE: Well, I'll tell you what, it's great to get a 30,000-foot perspective here when I've been away for a couple of weeks. I'm looking at the YFi Interactive, specifically at the S&P 500. This is a year-to-date chart. Last time I was in, we were about halfway through. We had just cleared the resistance at about 3,900. Now we are on our way up. Now the big question for the markets is, how much further do we have to go?
One of the things I'm looking at today is the strong US dollar index. Now that is a dollar strengthening trade, but what's also concerning, we also have a yen strengthening trade. It looks like my YFi Interactive connection is a little bit slow right now. But if I had my currencies heatmap, I would be showing you that there is strong dollars flow into the yen, not only from the dollar, but from the euro and from the CHF. That is a Swiss Franc. So all of that points to the fact that we do have this tremendous short covering rally underway. However, it may give way to some weakness.
Now we have some incredible flows coming in to the market. I do have a note from Goldman Sachs. We got-- well, let's look at this. Systematic demand, 5 and 1/2 billion per day this week. Estimated $5 and 1/2 billion worth of corporate demand. Equity inflows, 2.2 billion per day. So all of this is a tailwind. However, we are still in the middle of this very illiquid summer market, guys.
JULIE HYMAN: Speaking of illiquid summer market, one of the other-- I don't know-- whipsaw kind of moves, although even with a lot of liquidity, this one moved around a lot. I'm talking about Bitcoin. It briefly touched $25,000 Sunday. So what are the technicals telling you about where it goes now?
JARED BLIKRE: Well, I'll tell you what. 25,000 was a big psychological level. Also, since we do have a short-term uptrend here in place, maybe even an intermediate term, that was a price target. However, let's remember, we sell through 25,000 very quickly. When we were at 30,000, we dropped to 20,000 very quickly. That means there is not that much price memory at that level.
So what we need to do on a short-term basis, not only 25,000, have that in sight, but also 30,000. Once we're able to reclaim 30,000, then we can start thinking about some of those next big levels. So in the meantime, 25,000. Nice to see those dollar moves into Bitcoin.
But I was mentioning the strong dollar before. Now the strong dollar is not only bad for commodities, not only bad for multinationals, but it's also bad for cryptos because that is the denominator. When you take a look at our crypto ticker, US-- it is BTC over USD. That is the denominator.
So bottom line, the dollar trade, if that's picking up the dollar strength, if the yen strength trade is picking up, all of these risk moves that we're seeing here are probably going to falter. In the meantime, enjoy the short covering rally, guys.
BRIAN SOZZI: And we are enjoying having you back. Jared Blikre, we'll talk to you soon.
JARED BLIKRE: Thank you.