Goldman Sachs today breached a triangle consolidation pattern to the downside, which has potential ominous implications for the broader market.

Not only did price break beneath a triangle or coil formation, but price violated the significant “200 day moving average” which often is viewed by those with little technical analysis knowledge as the “line in the sand.”

The momentum oscillator also formed a coil or triangle and momentum (black line) also has breached to the downside.

It must be noted that the $205 price level has held as support, and I may need to redraw the triangle to a more ‘right angle’ triangle should this level hold as support, and as always price could breach beneath temporarily, drag in short-sellers (and trigger stops) and then eject back to the upside.

There’s no way to know for sure which direction price will eject from a consolidation point, but often price moves can lead to strong temporary momentum (directional) moves.

In this case, it appears the move could be to the downside, which would have negative implications for the broader market, especially if financial stocks tend to lead the market.

Keep your eye on this and other charts from major financial companies.