Ideally we would look for a bounce at one of the support levels and for it to go back and test the at 9400 level.
You can short from here if it looks to break down again but if it was to get on top of that, it would make it support and it would head back up to test the outer (red) .
So we have two ways to play.
1) Wait for a bounce and go long, keep an eye on it at 9400 area. If it was to reject that, you could short from there.
2) Wait for it to break that 9400 area and go long from there. Again if it was to reject it, you can go short from there.
Whatever happens the 7500 area is the last strong support I see for the time being. I would expect a bounce if it was to get there. If it broke that level who knows where it goes.
So bulls can wait for a bounce and go long. Bears can wait for 9400 to go short.
To learn about you can look up Brian Shannon. He posts a video every Friday I recommened you follow him either on twitter or youtube.
And a good free script I found to show this can be found here.
Sort of like this, first sign is the red one. (7day) Then the green one (20 day) It should bounce nicely with that. Eventually the (50day) Blue one. That would be a proper correction and the (200day) White one would act as resistance. If it was to get on top of that again it would be a great sign.