Don't Ignore This Chart!

S&P 500 ETF Joins a Crowded Bearish Engulfing Scan

With a strong open and weak close, dozens of stocks and ETFs made the bearish engulfing scan on Wednesday. These patterns form when the current open is above the prior close and the current close is below the prior open. The result is a black candlestick that engulfs the body of the first. These are short-term bearish candlestick patterns that require confirmation with further weakness. On the SPY chart, I would mark first support near broken resistance in the 172-173 area.

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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