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S&P 500 Bearish Triangle May Lead To Additional 8% Decline

ByChris Kimble
Published 03/07/2022, 04:16 PM
Updated 07/09/2023, 06:31 AM

SPY Daily Chart.

The financial markets remain volatile as inflation, supply-chain issues and serious geopolitical events cloud the immediate future.

This volatility has manifested itself into a bearish descending triangle on the broad U.S. stock market S&P 500 Index.

Looking at the chart above for the SPDR® S&P 500 (NYSE:SPY) we can see this triangle formation. Note the height of the last rally via the upper red arrows, as well as the major price support area at line (1).

Is the stock market selloff over?

Well, this support line may very well be our tell. If support at (1) fails to hold, a “measured move” suggests that the S&P 500 ETF could fall another 8% t to (2).

A move like this would further rattle the financial markets and perhaps your portfolio. Stay tuned.

Latest comments

All of this begs the question who should we hate more, Biden or Putin, it's so hard to know
And it may not. I'll ask my gypsy fortune teller.
This assessment is only valid if you have a fundamentally bearish bias. If you have no bias this does not help because these patterns do not predict the future…they describe the past.
So by end of week we will hit a bottom qqq already in a bear market, small caps for months now, so many stocks down 40,50,60,70,80%. Cheap just getting cheaper panic selling at its finest.
What exact level is at support line "1"?
Today's close.. $420
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