This morning I posted the following chart on my instablog over at SA during the first hour of trading. What we had was a sharp drop at the open which saw the SPX violate the lower support line of a descending triangle, as well as breaking the 50 day. The rest of the day didn’t bring much improvement, and we closed near the lows with a surge in volume. The techs and small caps were really hit hard.
Based on the overall market picture, I think there is an increasing probability of a severe break in stocks in the near future. I will outline my thoughts on the data in more detail over the weekend in my regular market review.
The Simple Accountant's Finance Blog 
Hello Harry,
I misjudged yesterday, having forgotten a basic technical aspect. That’s a good lesson for me. I thought price would break to the upside.
And what looked like a Symmetrical Triangle became a scallop. But the S&P is sitting on the 50 EMA. It will be tested tomorrow. We shall see.
Now I can see that Descending Triangle, which is a tighter pattern than the Symmetrical Triangle.
Aloha,
Shirley
Hello Shirley,
I had been watching this price pattern develop and wasn’t too certain myself, but the real concern for me was confirmed with the Dollar re-testing the November lows and getting a bounce there, together with all the other inter-market action we’re seeing. The alarm bells are starting to go off. Hope I’m wrong but this has an ominous feel to it.
We’re oversold in the very short term so we could see a little rally attempt on Friday. Let’s see what happens.
Good luck and best wishes
Harry