Cannonball

After gapping down Monday the market made no attempt at a gap fill and just grinded lower all day. It was a pretty ugly day but most of the selling was done overnight and the intraday action was quite dull and boring. We bounced in the last hour to close off the lows but still down around 785. Going forward now with 800 broken to the downside I think any move into 800 should be sold into and we will at least come down to test 765 gap fill from last Monday's big up day. If that level holds then ok but odds are that they will try to test 741 imo.

As for Tuesday, the pivot sits at 785 and the futures are bouncing above that tonight so I think if we get a morning rally then don't fall in love with it but expect some weakness as the market approaches the 800 area. We are now back in the 741-800 trading range that the market has spent so much time in lately so until we break either side of that range then expect a trading range to ensue.