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Why Tuesday Was a Let-Down

There's no getting around it: Tuesday was a disappointment. A half hour before the market opened, oil was at $106, down about $9 and traders on the floor were anticipating that the Dow would hold onto what looked like a 200-point up day, the S&P a 20-point up day.

  • Video: Pickens Doesn't See Oil Below $100

But the high was right after the open, and we drifted lower from there, until a tech-led selloff just before 2pm ET ignited the final down leg in the market.

Why a disappointment? Because bears have successfully argued that the decline in commodities is due to the global slowdown. They say savvy stock investors know this: with oil down nearly $40 from its highs in July (a decline of 27 percent), the S&P has only managed to eke out a gain of about 5 percent since its July 15 low. That is a disappointment.

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New from CNBC.com:

- See The Dow 30 Now

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Bonds seem to have attracted the money that came out of the stock market. Bears note that a rally in bonds is in keeping with the global slowdown theme that was behind today's selloff.

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CNBC's Names in the News:

- Lehman Bros.

- Apple

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Questions? Comments? tradertalk@cnbc.com