Well, as I've said earlier, it was a good day for the bears, but one day does not a trend make nor an old trend break. I'd like to see a down move just as hardy on Tuesday before getting too excited. I took some profits today in some large short positions, and I'm going to remain "half-committed" until I see stronger evidence that the path toward 880 is wide open.
In the meantime, here are a few major charts and my thoughts on each of them. The NASDAQ, below, has come full circle from its breakout a couple of weeks ago. All those gains are zeroed out now. The big decision at this point is whether the weakness continues. The gap has been filled and there's some support at the Fibonacci fan line. My gut-feel is that we'll recover some of the lost ground tomorrow and then resume the drop on Wednesday. But, honestly, that's just a wild guess.
The ES paints a clearer picture. We see very formidable resistance above at 935, and a pretty clear free-fall to 880. Even if we noodle around between 920 and 935, I think the 880 level is a pretty plain destination.
The Russell 2000 also has a lot of dead air under it. I'd say this will head back down to about 475 or so if the S&P makes it to 880.
I'm still short USO, and a drop to the low 30s would make (a) a great place to cover and (b) potentially a great place to reverse the position.
That's it from me. Good night!