Once again the market reminded us of why it is critical to remain open minded and prepared for anything.  The SPY did recover on Wednesday and is now back to the level of prior short term support at 110.80 which led to the sharp selloff upon breaking on Tuesday.  On the bigger picture, we have been monitoring the 111.10-111.60 level as important due to location of; 50 dma, 12/31/09 low and 61.8% retracement of the range for 2010.  If the market can overcome this level it could lead to a quick rally up beyond 112.10 as shorts scramble to cover.  Back below 110.40, we will want to raise our defenses once again.