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Looks like a big test today for the Standard & Poor’s 500 index and for U.S. stocks in general.

Today straight out of the gate the index broke below the 1100 level where, over the last few days, it looked like the index was trying to stabilize. (See my post from yesterday, May 19, ) The 1100 level represents the index’s 200-day moving average, a major support level.

In today’s trading the index dropped like a stone to 1088 by 9:40 ET. It has rallied slightly since then but still stands below the 1100 level.

Watch to see where the index closes today.

A break below the 200-day moving average would probably lead the index to fall to its next level of support at 1040, a decline of about 5% from here.

A close above 1100 today would add strength to idea that the market is trying to stabilize—I the short run—at that level.

Stay tuned.