The cracks we observed yesterday are turning into more serious selling today. All of the major averages are showing a fresh series of lower highs and lower lows below a declining 5 day moving average (red). The market has come down grudgingly so far but it is starting to seem like the buyers are becoming more careful and sellers are getting a little more aggressive.
The QQQQ is testing an important level at 3340 and the IWM is now at the important level of prior resistance at 4800, failure of the market to recapture these levels on a closing basis could lead to more dramatic declines.
8800 is the more important level of potential support for the SPY as it is where we see the prior resistance (mainly on the daily timeframe at the late Jan/ early Feb highs) and the location of the uptrend line. For the XLF, 1115-1130 remains key and that level has further significance due to the uptrend line also.