Shares of Disney (DIS) are sliding in after-hour trading. This is an initial reaction to the company's Q2 earnings report. Here's an article from thestreet.com:Entertainment giant Disney (DIS) reported EPS of $1.50, beating estimates of $1.41 expected for its fiscal second quarter earnings after the close on Tuesday. However, revenues of $13.34 billion fell slightly short of estimates of $13.45 billion, causing shares to fall after-hours about 1.5% to $110.50. Disney's parks and resorts division showed revenue increase of 20% from a year ago, and its movie studios also performed well. Disney's Media Networks division, which is driven by ESPN, remained challenged with the loss of cable subscribers and increasing content costs with a new contract with the NBA.Media stocks have been battered recently as advertising sales decline and pay-TV subscribers cut their service at a faster rate than ever before. Disney analysts will no doubt question CEO Bob Iger about the situation at ESPN during the company's earnings call.Disney (DIS) Daily Chart(click to enlarge)Bearish Correction:- Even before the earnings report, price was retreating from the high of 116.10 from late April.- Note that the market stalled around 110, and above the 100-day simple moving average (SMA) ahead of the earnings report.- What is interesting is the strength of this correction relative to the weak crawl up from a low around 106.60 in January. - I think the strength of this pullback puts the 106.60 low on the year in sight.- With a negative reaction after the earnings report, I think this short-term bearish outlook is even more likely.Support/Resistance Pivot:- The 106.60 area is a support/resistance pivot as we can see on the daily chart.- If price stalls here and creates a bullish divergence versus the RSI, we should consider a bullish outlook back towards at least the current level around 112. - Below 106.50, we should probably look for further downside to the 102-102.50 area, near the 200-day simple moving average and a previous resistance pivot.