S&P 500's Break Below Diamond Pattern May Spell Trouble: Chart

Trouble ahead for U.S. stocks?

Andrew Cinko

16 Jun 2017, 04:13 PM IST

S&P 500's Break Below Diamond Pattern May Spell Trouble: Chart

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Eric Thayer/Bloomberg)

(Bloomberg) -- Trouble ahead for U.S. stocks? This chart may be an indicator. The "diamond formation" falls under the category of reversal patterns, where a new high is rejected. With the S&P 500 Index falling below the diamond on Thursday, this might be a signal to sell. For more market commentary, see the MLIV blog.

To contact the reporter on this story: Andrew Cinko in New York at cinko@bloomberg.net.

To contact the editors responsible for this story: Sophie Caronello at scaronello@bloomberg.net, Michael P. Regan at mregan12@bloomberg.net.