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

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by Kimble Charting

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 index the S&P 500.

Looking at the chart above (of the S&P 500 ETF $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).

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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 percent to (2).

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

 

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