With the U.S. presidential election fast approaching, the financial markets are pricing in more risk of a potential victory by Republican presidential candidate Donald Trump.

You will notice in the S&P 500 (^GSPC) chart below that price has been grinding slowly sideways to lower in recent weeks and winding up for what could be a strong breakout.

The market has already turned mildly bearish, and a Trump win could send prices much lower in the short term. We can look to be sellers this week on any temporary strength, with downside targets at 2100 or even slightly lower.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.