Stocks broke down from what appeared to be an inverse head and shoulders pattern yesterday. This is why it is important to wait for confirmation of a breakout before trading this pattern. It is also important to check the Kovach Momentum Indicators since these suggested a divergence, indicating a breakdown.
Stocks are looking technically very weak at the moment, and the Kovach Indicators are all trending downwards. It looks like we are in the midst of a corrective phase in a 5-3 Elliott Wave. Watch for support at 3116, but if this cycle continues, we could test lower levels at 3094 or 3071.