Dow 7000, We Hardly Knew Ya

Well that was a ugly day for the bulls wasn't it? Good thing we know to be short in a bear market, lol go figure. We had a runaway gap on Monday and trended lower all day. The ES tagged a 6 handle with a low of 698.75. We have now had 10 days in the red out of the last 11. That definitely means we are due for a snapback rally of some sort. And just perhaps it might come Tuesday.

For Tuesday, the pivot point is at 708 on the ES and we are trading up after hours clear up to mid 710s. I think we could have a bounce at least in the morning if we can stay above that 708 mark. I really don't think any rally sends us any higher than the 740 level that was broken to the downside and now becomes resistance. It looks like we are headed lower in the intermediate term but a short term rebound here could surprise some traders so keep a watch for that.