Looming Pattern Roil Markets on the Edge

Steve Kanaval |

The August lows, the October sell off, and a hefty 2016 decline have created an ominous pattern that every technical analyst is watching closely. Today's action should confirm the next downside leg to this ugly move. The reasons continue to pile up from Portugal becoming the next Greece, to Janet Yellen realizing the US economy is in trouble and raising rates was a bad idea. Below is this ominous pattern everyone is looking at...so beware, another 5-7% sell off is looming. Equities.com projected targets for the down side using S&P 500 ETF (SPY) to 178 level, which will act as support once we get this upcoming nervous flush.

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