Today revealed a Bearish Engulfing candlestick on the SPX index daily chart. Bearish engulfing candlesticks can engulf its previous candle and often engulf a range of candlesticks made in prior sessions . Today's candlestick engulfed the previous 5 sessions, which would embolden a bearish evaluation of the current day's outlook. Although not all bearish engulfing candlesticks mark reversals unless used in conjunction with other bearish implications. This marks the 3rd attempt at the declining 200 day moving average with no sign of staying power. The MACD indicator is now showing a downward histogram bar indicating that momentum is waning. Investors/Traders should closely watch the reaction to price when approaching significant resistance levels,moving averages, previous congestion areas, and previous minor highs.
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