SPX S&P 500 Daily Chart; 2-Leg Bear Flag Pattern

You can see the 2-leg bear flag pattern (blue) playing out with many of the indexes from the early October top to Friday's bottom; 3 months of Hades for anyone long the market. The middle consolidation zone should actually drift higher for the chart pattern, like the sketch diagram, but as the old saying goes, 'it's close enough for government work'.

The first leg down is 2941 to 2640 for the closing price. You can calculate the lower target price using the 2600 low as well for the first leg. So the drops are 300 to 341 points. Price consolidates sideways which forms the flag, or pennant, and then price begins moving lower again starting leg two from 2800. Thus, the downside landing area for the 2-leg bear flag is 2459-2500 (2800-300 and 2800-341) the blue circle. The SPX prints at this level so the pattern is satisfied and finished.

The SPX topped out at 2940.91 on 9/21/18. A -20% drop off the top, a bear market, is at the 2353 level. The S&P 500 is at 2416 only 63 points away and the Friday LOD was down to 2408 which is only 55 points away from a bear market. The SPX, the broadest measure of the US stock market, the index that is synonymous with the words "stock market," is a tiny smidgen away from a bear market. The COMPQ, NDX, RUT, SOX and TRAN major indexes are all in bear markets. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.