Monday was a digestion day as the markets locked themselves into a choppy range for much of the session. The afternoon hours did mark a sharp move down but the bulls reciprocated with a bounce back reaction into the close to form dojis on the daily market charts. The day was not all that unexpected following the decent range on Friday, although I had no model to predict it.

Fact is it wouldn’t surprise me if we consolidate along these lines for a little while before we make the next move, most likely lower. I might look for a little bit more range on Tuesday, and again it’s difficult to predict a direction for the day. If we do rally and close strong, though, I will probably look to fade it on
Wednesday.

I am still bearish for the short and intermediate term here and if we do put in a sharp bearish impulse out of the market open, I probably would look for flags and pennant setups for more downside plays.

In the meantime i am still long SKF and short SOV

AMZN short was awesome to say the least and I think it goes lower.

Have a great Day