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Commentary Topic from greenfaucet

Looking Inside Bearish Engulfing Bars and the Reversals that Followed

It’s mid-day, and so far the S&P 500 has formed a clean – nasty – bearish engulfing candle on the daily chart – that’s a very powerful signal. Let’s take a quick look at the formation of the bar and then look what happened the last time – June – when we saw this exact same pattern – it’s not bullish. First, the daily chart for reference: