The major indices fell for a fourth day on Wednesday setting new lows in the process. The S&P 500 closed near the low of the session with a decline of 1.84% and below the key 4,300 level. With the index at this new low, the odds of a much deeper decline have risen. The next key line in the sand is at the low of Wednesday's session and, if broken, investors can look forward to another 200 point decline in the broad market.

The next key test for the market will come on Friday with the release of the PCE price index. The index is the Fed's favored tool for measuring consumer-level inflation and it is expected to be hot. The takeaway here is the fundamental conditions on which the market rally is based are about to be changed at a more aggressive rate than anyone thought possible. The risk for the market is tremendous.