8 Charts Suggesting Stock Market Pullback Could Deepen in the Near-Term

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Nasdaq 100,S&P 500,Adobe Systems Incorporated

Stocks Analysis by Michael Kramer covering: US Dollar Canadian Dollar, Nasdaq 100, S&P 500, Adobe Systems Incorporated. Read Michael Kramer's latest article on Investing.com

Treasury yield surging past 4% for the first time since August, setting a cautious tone ahead of critical inflation data and the kickoff of earnings season.As stock markets pull back after recent highs, let's take a look at 8 charts suggesting the stock market correction could still have room to run.The S&P 500 fell 90 bps yesterday, closing at 5695, bringing the zero gamma level back into focus.

If the index gaps lower yesterday, it could create an island reversal top, initiating a move back to 5620. A drop below 5620 would push the index toward 5400.Both patterns suggest a move back to 18,480. This could be a significant move, as it impacts the larger bear pennant that has been forming in the index since the July peak.closed at its highest level since mid-August, potentially reclaiming resistance at 1.36.

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