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
Nota
Confirmation did not come next week that negates the downside view...Apologies for the late update
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.