First off we'll start with monthly and weekly charts from DJI.
From those charts you can see how the blue channel, the top line is now resistance. We broke that channel back in last October, and it was when we crashed. We have now bumped into that area. Not only that but check weekly update and you have resistances (drew in white) which in EW corresponds to the previous 4th wave of lesser degree - a common stop for corrections. Not only that but check the red trendline, which is the BEAR MARKET trendline from the top, also lays in that area.
Also the top of the wedge... which can clearly be seen in the S&P graph.
We undercut also today the bottom of the wedge, which is a really bad sign for bulls...
I would give some more leeway in order for the index to try and close above the white trendline again before calling it a confirmation... but so far evidence foretells a bigger correction even if this is not P3.
Check pics:
Not only that, but the USD is showing signs that it has bottomed
