There are bearish engulfing patterns and then there are BEARISH ENGULFING PATTERNS. With a strong open and weak close on Thursday, the Dow SPDR (DIA) formed the latter. This is the second bearish candlestick pattern in two weeks. A follow through break below the early November low would confirm this pattern and reverse the five week upswing. Chartists can also watch the MACD Histogram as a move into negative territory would signal a downturn in momentum.
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