Monday was a choppy day that ended pretty much flat overall. The best trade of the day was probably going long at the open for a shot at the gap fill, which was achieved. We ended up with some short covering in the last hour and even that was on low volume.
Going into Tuesday I am expecting a possible bounce but I am still bearish on this market so I would not be looking for much to scalp on the upside. With the daily pivot at 819.25 we could setup for a chance to go long in the morning. We are trading in the low 820s after hours currently and I would think this market could actually trade into the 830s if it holds the pivot after the open.
There is a small long ambush play at 820 that has a target of 831 if hit. But we also have short ambushes up at 828 and 842.25. Both of which could halt any rally as selling pressure mounts. If we do not hold up above the pivot tomorrow then I would be looking to sell retracements all day long as I think we could get back to the low 800s in that case.
But don't be surprised if we bounce a bit, because after all, even dead cats bounce when they fall out of a window.