The S&P 500 index is currently delivering us a classic technical figure called "symmetrical triangle". The symmetrical triangle appears after a strong uptrend or downtrend and shows the indecision of investors and the fight that is taking place between the bulls and the bears. Generally, this technical figure is a continuation figure: the trend that precedes the appearance of the symmetrical triangle continues. However, the move that occurred on March 10 was an exit of the triangle to the downside after an uptrend took place. This means that the probability is higher that a downtrend is now starting.
To change my mind, I would need to see the S&P 500 index return to the 1340 price zone and then break out to the upside. But I think this scenario is unlikely to happen.
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