Some technicians say the S&P 500's move below 1040 signals a technical "head and shoulders" pattern, a bearish sign for stocks.
According to Barclays chief global technician Jordan Kotick, the S&P is heading into that pattern, but it's not quite there yet. The signals appeared last week and suggest serious downside vulnerability.
The "head and shoulders" is a distribution pattern that historically leads to lower prices, said Scott Redler, a technical analyst with T3Live.com. The pattern started in mid-October, when the left shoulder rallied from a level of 1040 to a level of 1150 in January. At that point, the uptrend broke and created the 9 percent move lower into the Feb. 5 reversal, leading to a move to 1217.