ANALYST: We Have A 'Bart Simpson' Formation In The Stock Market

Stocks started the day in the red, surged, moved sideways for a while, and then tumbled on no obvious news.

So what happened?

Stifel Nicolaus' Dave Lutz has three reasons for what he has dubbed the "Bart Simpson" formation.

Some "derisking" going on the tape today (and somewhat tomorrow) due to the holiday crimping liquidityThe potential downgrades of the three largest custodian banks shouldn't be dismissed (BNY Mellon, Northern Trust, State Street may be cut by Moody's)Egypt getting worse. Shouldn't be a a massive factors, but a reason to derisk.

Here's a look at the move in the S&P 500 via Bloomberg with some color modifications:

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