NEW YORK (TheStreet) -- After having a strong open, the Dow Jones Industrial Average is down while the S&P 500 is just slightly in positive territory. Keith Bliss, senior vice president of Cuttone & Company, told TheStreet's Debra Borchardt that generally when there are sharp moves higher or lower they result from a computer trading program.
These algorithms operate with tight stop-loss and limit orders, which then trigger other automated programs to either buy or sell, creating a "cascading effect," he explained.
However, the market seems to have stabilized and will likely rally depending on earnings, he suggested.
With the exception of the financial sector, which reported earnings last week, many bellwether companies from most market sectors will be reporting during in this holiday-shortened week.
"This is an important week," Bliss said. Investors will gain better insight into what big businesses are doing and what the consumer trends are like, especially with such names as Starbucks
(SBUX) and Netflix
(NFLX) scheduled to report.
Regarding earnings, Bliss said he focuses on two main things when he gets a report: the company's revenue trend and guidance.