From a swing move perspective, the fact that the S&P 500 Depository Receipts (SPY) have violated 125.55/50 indicates that the current decline off of Tuesday's rally peak at 130.71 should accelerate lower to test and likely violate the July 28 low at 123.42 on the way to 122.40/30 next.  Any recovery rally effort is unlikely to be able to penetrate resistance above 126.30/50 prior to hitting 122.40/30 first.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.