Got a big, "heavy" bearish engulfing candle today on the $SPX, but not before it was able to print a higher-high.
This is all after the market spent very little time "under water" (i.e., it's 200MA).
Just need a higher-low, ideally holding support at the 200MA. pic.twitter.com/0p9WdJ5Yyd
— Adam D. Koós, CFP®, CMT, CEPA (@AdamKoos) November 9, 2023
Today’s Chart of the Day was shared by Adam Koós (@AdamKoos). The S&P 500 snapped an eight-day winning streak today, printing a bearish engulfing candle. This reversal candle suggests an exhaustion of the near-term uptrend. While this pattern tells us to anticipate weakness in the coming days, daily candlestick patterns have little relevance to long-term trends. The simplest definition of an uptrend is a series of higher highs and higher lows. Adam points out that the S&P 500 achieved a higher high this week before today’s reversal. The next thing bulls need to see is a higher low…ideally above the 200-day moving average. A higher low would also create the right shoulder of a potential head & shoulders bottom.