Market Update: S&P 500 breaks down through triangle

I've been writing almost daily about the developing triangle formation in the hourly S&P 500 chart. On Friday I wrote, "we are definitely at a key inflection point with the eventual breakout from the triangle formation likely dictating the market's future direction." Well, it appears as if the eventual breakout was down.

Source: Finviz.com

The hourly futures chart above shows the S&P 500 plunging down through the lower boundary of the triangle formation, with a recovery rally occurring in the last several hours.

As per the technical truism "what was support becomes resistance," the 1640-1645 level has become new resistance for the index. Again, as I've repeated more than once in recent past postings, given we're using hourly charts the focus is short-term. Longer-term repercussions could eventually stem from these shorter-term observations, but the point being I do not wish to overstate what we're discussing here in the short-term. Let's not get ahead of ourselves. 

But as I wrote on Friday, clearly this breakdown in the triangle formation has implications for S&P 500 direction over the next several days or even weeks, i.e. it does not bode well for the market near-term.