The SP500 broke the 1070 and came down to test the 1040 level with a very negative market sentiment today. Having all the talking heads watching and talking about the 1040 technical level, and having lot of stock with negative momentum price actions, this 1040 level will most likely be broken after it chops around a bit. The long red candle that bought the SP500 down to 1040 level is not a candle that the market will print when it reached a reversal level. If the SP500 breaks below 1040, it might not find support until it reaches the May/July 2009 low in the 870-880 range, and that could get ugly.
