Last week, the S&P 500 Index (SPX) printed a bearish engulfing candle on the weekly chart. This candlestick pattern occurs when a larger red (bearish) candle completely "engulfs" the body of the previous green (bullish) candle. It is a classic reversal signal, often indicating that the momentum may be shifting from bullish to bearish.
What makes this significant is the recurring pattern we've observed:
At each of the last three market tops, the SPX formed a bearish engulfing pattern—and each time, this was followed by a notable correction or pullback.
The current candle mirrors those past setups almost identically, suggesting that the market may again be vulnerable to a short-term decline.
However, the big question remains:
"Will this time be different?"
In short, the bearish engulfing pattern is a warning sign—especially given its historical reliability at tops—but confirmation is key.
Ask ChatGPT
What makes this significant is the recurring pattern we've observed:
At each of the last three market tops, the SPX formed a bearish engulfing pattern—and each time, this was followed by a notable correction or pullback.
The current candle mirrors those past setups almost identically, suggesting that the market may again be vulnerable to a short-term decline.
However, the big question remains:
"Will this time be different?"
In short, the bearish engulfing pattern is a warning sign—especially given its historical reliability at tops—but confirmation is key.
Ask ChatGPT
ملاحظة
Confirmation did not come next week that negates the downside view...Apologies for the late update
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إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.