Monday was the warning shot, Tuesday was the follow through, but there was still sufficient latent demand to at least take indices near to where they finished yesterday. While at one level we have breakdowns, if we take a step back we are looking at a return to trading ranges. Tests of the 200-day MA are next on the list of major to-dos but it will take time to get there.
The S&P finished below rising support on a bullish doji. There is 50-day MA support to lean on first as the 200-day MA remains a long way from current price action. Technicals are net bearish with new 'sell' triggers for On-Balance-Volume and ADX.
The Russell 2000 (via IWM) experienced a similar gap down but again, in the context of past price action remains range bound. One probably can't read too much into current price until either there is a loss of $208 or a push above $235. The index holds a relative performance advantage over the NASDAQ, but not the S&P.
Yesterday's action looked dramatic for the indices, but given it occurred within the content of trading ranges its significance was reduced. Taking profits and waiting for the ranges to break, or selling covered calls, are both potential plays in the current environment.