Over the last couple of days the market has stalled at the highs of 2011 and this year highs, but SPY was able to remain above support at 137.10. Till yesterday when SPY opened below this key level and was never able to retake it. In addition to breaking below the support at 137.10, SPY also broke its intermediate uptrend which started in December. Yesterday's price action was bearish for the short-term and SPY now has resistance above it at 137.10 and 138.19, with short-term resistance at 135.93.
[Related -The Global Credit Market Is Now A Lit Powderkeg]
Now this morning we have futures dropping even lower with SPY trading at 135.80. So where can SPY go next, SPY was above support at 135.93 but is trading below this, its next short-term support is at 135.42 this the top of a range for the market before it broke out in the middle of February. If SPY continues it downtrend this would be a logical short-term stop point. If the market picks up its selling a more firmer and a must hold level is 134.04 but this level may not hold. The market more the likely will gravitate towards the unfilled gap and the long term uptrend line at 133.41.