Things are looking bearish for S&P 500 index. Using the $SPY chart, A bearish wedge pattern has formed and we have started to break down from it in today's session. Pattern usually retests the bottom wedge before it completely sells off. I expect prices to drop to $416 this week and test our year long trend channel. If $416 area does not hold, I expect it to drop to $390 levels where the decade long uptrend channel is as it still remains intact (purple dashed).
