The SPY dropped from the location of the 50 DMA and the 61.8% retracement of the year high to the year low on Tuesday.   The level we expected might act as support near 110.40 failed quickly and now we will be looking to see if the market is able to recapture that important level.  If the market can regain the 110. 40 level there is further potential for resistance near 110.80 and with the market back below the declining 5 and 50 day moving averages, a more defensive posture is once again prudent.  Be sure to tune into my show live at 4:00 PM Eastern on Wednesday to discuss the current market in more detail.