Stocks are still range bound, but there are some interesting bearish possibilities

SPY has dropped 2% over 2 days, but it is still range bound :

In fact, we noted previously how SPY has been range bound for most of this year.

If we were to make a case for continued weakness in stocks, then we could point to SPY breaking below support of the rising channel/bear flag. There is also a possible 4-week H&S top forming. That said, such small patterns usually fail and the chart goes onto form something different. Still, traders must remain flexible and be open to different possibilities.