S&P 500 Forms Bearish Pattern, Spelling Downside To This Target

The stock market is forming a classic bear flag pattern. Bear flags are formed after a huge move down, when the market only gets a small bounce or stays flat over the course of multiple days. That is exactly what is happening to the S&P 500. This signals to investors that another move down is coming, likely to a target of $228.00 on the S&P 500 tracking ETF $SPY. The current price of the SPY is $234.30. Based on the past week, it is likely that financial/bank stocks take the market lower and interest rates waiver on a failed healthcare plan and thus a possible delay in in tax cuts.