I'm no expert on the 'rules' of the Gann 7-10 thing but I do recall one of the rules is after 10 days the market is considered to be a 'runaway' market and I 'think' it is aborted as a trade. Now one would think the 1st lower low would still be a signal to exit or short but like even chart patterns there are rules that when not followed you no longer respect the chart pattern that was being formed. Regardless of what happens you now have an Outside day with the higher high and lower low than yesterday. That is a sign of trouble after a lengthy run up too. It displays a level of weakness that hadn't been seen for weeks until today. Not the end of the world but still a negative sign regardless. And today's high is a Fib 61.8% retracement of the last selloff which often serves as resistance. But a bull is a bull and stepping in front of one can be hazardous to one's trading account.