katie stockton is the founder and managing partner of fairlead strategies. a beautiful place to be.the market from a technical standpoint. where are we right now? >> i think it's a cyclical bull trend. we still have long-term upside and that's promising. we are now looking for an entry point and that would have more shelf life,our opinion, if we can see it clear resistance. it's right around 4,600, a level it's topped out a few times. if we see a couple solid closes above, it would be a foregone conclusion. with that, i think the breadth would expand. you've seen the small cap underperformance of late. >> what leads to you believe we are still in that trend? >> we have monthly trend following gauges, we're technicians so use the mac-d indicator. thaul of those are still pointing higher but not on a broad basis yet. consumer staples as one, they don't have the long-term momentum. >> where we started the program with apple, as we're less than 30 minutes away from this big event. that stock is a question mark because, as i said, doorstep of 190, what do the charts tell you? it needs to

our guest trader tonight, katie stockton of fair lee strategies. >>> and we start off with the newest milestone for interest rates. yields on ten-year surging part the 4.6% mark, getting closer to breaking above october 2007. the benchmark rate is up 1.4 percentage points from its april low, massive move. the rapid rise in rates taking a particular toll on a few sectors. real estate, utilities among the hardest hit. and while stocks closed off their lows of the session, the attempted rally lost some steam so, how worried should stock investors be about these rate moves? we like to play a game -- >> i love games. >> here on "fast money," where i would say, imagine if yesterday i told you this would happen, what would the markets do? if i said to you, guy -- >> i love games. >> that ten-year yields would go above 4.6%, what would the market do? >> nasdaq is probably obl oblit obliterating, russell, small caps are getting whacked. vix is north of 20. >> none of those things, and the opposite when it comes to small caps. >> which is a good sign. 4 4190-ish, got down to 4230 something toda

joining us, fair leaf managing partner katie stockton. great to have you. walk us through what an entry point might mean, in your view. >> a lot of corrective phases unfold in this a, b, c format but three ways. we think we're in the third wave, the final wave of that corrective phase. but that would require, of course, some kind of oversold entry point. we're not convinced we have that quite yet. the short-t term momentum is ve strong. we do have some minor signs of downside exhaustion including that market breadth you cited. they're not widespread to give us enough confidence. we do think there's a good possibility that entry happens either this week or next week. what would really help is that is a pullback in yields. the market doesn't like yields breaking out. and the ten-year yields have cleared very strong resistance at the 2022 high. if that breakout confirms this week, that's a pretty big deal. i don't think that will be favorable for equities. if it fails to confirm, that would be a positive. >> i was going to say, there was some last week who wer

katie stockton tweeted today, she saw it up to 94. we're seeing the spike. t today, we saw a spike on the back of the production -- >> i think we're at the higher end. so, katie sees it to 94, i said, i think 100, that big fat round number is probably going to be the limit to the upside, thereabouts. so, we're closer to that then -- you can sort of see the light at the end of the tunnel. southwest chart is the most hideous chart in the airlines. delta, united, still look okay to me, so, if you are going to look, if you want to bottom fish and look at southwest, then you can probably take a stab at that, but i don't see any reason to be -- to go out on a ledge and buy any of the airlines right now. >> i don't see any reason to trade airlines on oil prices. we don't reward them on the way down. we don't talk about it being a windfall on the surplus to them. i just think, look, i'm a big fan of delta, i'm a million miler, i've thrown a lot of miles on delta. >> bragger. >> i think this is the best airline by far in terms of what their execution is, their balance

but without looking at the past, katie stockton is here to talk about what could happen.ant to get to that in a second to see. you did think we were in an up trend for rates. but, first, let's talk what our viewers care most about, equities are kind of -- is it a malaise, a downtrend, a correction? seasonally it is a weak time. is it anything worse than what we should have expected? >> no, not at this stage. we have a correction within a cyclical up trend at this point, below 4200 if we saw that support area taken out. it would start to look like something worse because the next support is around 3900. but we do expect the correction to mature and honestly even as early as next week. seasonal influences as you know are really weak in september. we have usually a much better october, november. i think the bigger question beyond potential relief rally is how sustainable that is and will it get us back above that long-term resistance, which is about 4600. >> i don't know which -- i think all months have ides around the teens, 13th, 14, 15, the ides of october, they just are

. >> and joining us to read the charts is cnbc contributor katie stockton. nvidia?n a loss of momentum more broadly for the tech space that includes nvidia and probably at best neutral right now. we feel that we would hold to this long tradition and the broader market is over. >> and what will you need to see in order to convince? i'm assuming you're talking about specifically the biggest tech stocks, the quote unquote, magnificent seven as some like to call them. >> it been really interesting. for the past two weeks we've had relief from the weakness in early august and those two weeks have been very largely driven by mega kap. and i think it shows the propensity of investors to go right back to the existing leadership of the market into weakness. though i do still think that those leaders will take us out of the space but i'm not convinced that they'll -- it's an a, b, c fashion, and i think that's probably what we've seen over the last couple of weeks and perhaps stabilization and yields. >> are you surprised by how quickly the market seemed to turn around in the