Note: the following analysis is formulated as an assimilation of technical indicators. It is offered as education and not intended as advice in any way.
This AM's gap lower strongly suggests that a correction of some degree is taking place in all three indices that could at least have another leg down once an ABC bounce is complete sometime this AM. Specifically, important resistance resides at NDX 1498-1502 and it may be prudent to become cautious there for a move to perhaps 1484 +/- (or lower) and re-evaluate thru 1506. For the INDU: 10521-10535 is good resistance and could be an area of rest before moving at least to 10468 (possibly lower). We would keep an eye on 10550 for INDU short positions established this AM.
As we have been stating, this move lower - its size and impulsiveness, will help us determine the larger Elliott wave interpretation and whether new highs are likely or if the downtrend has reasserted itself. Time, and prices, will tell. As always not meant as advice.
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