The two black lines in the chart form a “triangle” or “wedge” pattern, but what you really care about is what that means. What it likely means is that after a period of very high volatility and market gyrations from late January until late March, the S&P 500 Index has calmed itself down. The triangle pattern usually hints to us that a return to high volatility is coming. What this says now, at least as far as the S&P 500 is concerned, is that the probability of another bout of stock market volatility is approaching. Price is real, and price patterns are what the charts show us.

Source: Forbes May 09, 2018 17:03 UTC