This chart pattern not a good sign for stocks

Traders work on the floor of the New York Stock Exchange.
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It's bad enough the S&P 500 suffered some serious technical damage Monday, but now it looks to some like it's forming a scary head and shoulders pattern.

As stocks were pummeled, the S&P 500 failed to hold 2,078—its technically important 150-day moving average—and then plummeted to close with a 2 percent loss at 2057. That's 4 points above its 200-day moving average.

Meanwhile,'s Scott Redler said when the S&P failed to hold the 2,110 level last week, it created a higher right shoulder in the head and shoulders pattern.