the spdr sp 500 spy took another beating on friday sliding about 17 after dropping over 2 on thursday amid fear surrounding the banking industry and jobs numbers that came in hot the shocking news that svb financial group the 19th largest bank collapsed within 36 hours sparked panic across the financial sector banks of all sizes are now fearful that they will suffer a liquidity crisis in the current economic environment and the jobs numbers aren’t unrelated the hot jobs data showing the us added 311000 new jobs in february indicates the economy remains strong this could push the federal reserve further toward hiking interest rates by 05 later this month want direct analysis find me in the bz pro lounge click here for a free trial the already highinterest rates are adding pressure on banks if the central bank continues with its hawkish stance that could cause a meltdown in the banking industry the news caused the spy to close thursday’s trading session under the 200day simple moving average sma and on friday the etf fell under a longterm descending trendline which could spell trouble ahead for the stock market the spy chart the spy reversed into a downtrend on feb 2 and has been making a consistent series of lower lows and lower highs the etf’s most recent lower high was formed on march 6 at 40745 and the most recent confirmed lower low was printed at the 39233 mark on march 2   on thursday the spy printed a bearish marubozu candlestick which indicated lower prices were likely to come on friday when the market opened the etf attempted to regain the 200day sma as support but failed before a further selloff began   if the spy closes the trading day near its lowofday price the etf will print a second bearish marubozu candlestick which could indicate lower prices will come again on monday the second most likely scenario is that the spy will consolidate the recent downturn with an inside bar pattern and trade sideways   eventually the spy will bounce up to at least print another lower high and that is likely to happen early next week because the etf’s relative strength index is entering nearoversold territory when the spy bounces it’s likely to reject at the descending trendline at least temporarily   the spy has resistance above at 38585 and 39417 and support below at 38130 and 37148 read next exclusive  jim cramer recommended svb financial in february an example of his reverse midas touch