Today, there was a downward pause in the Indices until the last hour of trading when the move lower accelerated. While breadth was stronger than yesterday, it appeared money was flowing out of stocks and into the metals, oil and Treasuries. This is concerning. While the NASDAQ and Russell have now broken support, it will be up to the Industrials and S&P to see if they can hold things up. If not, the selling could accelerate. What happens tomorrow and Friday will be extremely important.
Trading is a series of probability assessments. We have to figure out the higher probability of one event occurring over another. After today, there is a higher probability of more downward pressure. Watch the internals very carefully on any lower open tomorrow. If they are very weak, expect acceleration. If stronger, expect a bounce off of the current support levels.