S&P Prints Large Bearish Engulfing Candle
Biggest Drop in Three Months: S&P 500 and Nasdaq Tumbles Amid Late Sell-Off
The S&P 500 and Nasdaq experienced significant declines yesterday, the largest in three months, as a late sell-off halted Wall Street's push for a record high.
The drop was driven by Big Tech stocks, which hold substantial sway over market direction. About 96% of S&P 500 companies ended lower, leading to a 1.5% decrease in both the S&P 500 and Nasdaq at the closing bell, marking their largest fall since September 21.
S&P 500 Daily Candle Chart
Past performance is not a reliable indicator of future results
Bearish Engulfing Pattern
If we zoom into the S&P 500’s daily candle chart, we can see that yesterday’s price action formed a large bearish engulfing candle.
Yesterday’s range completely engulfs the prior four sessions – adding significance to the pattern.
Pattern’s of this nature tend to signal trend exhaustion and we could now see the S&P 500 enter a prolonged pullback after a stellar run higher during the last two months.
S&P 500 Daily Candle Chart (zoomed)
Past performance is not a reliable indicator of future results
Accelerated Selling into Closing Bell
Dropping down a couple of timeframes to the hourly candle chart reveals that the majority of yesterday’s bearish engulfing pattern formed during the last three hours of trading.
This accelerated selling into the closing bell was backed by rising volume – signalling intensified market activity and potentially indicating a strong conviction among traders towards the downside. The surge in volume accompanying the sell-off suggests increased participation, implying a shift in sentiment.
S&P 500 Hourly Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
The S&P 500 and Nasdaq experienced significant declines yesterday, the largest in three months, as a late sell-off halted Wall Street's push for a record high.
The drop was driven by Big Tech stocks, which hold substantial sway over market direction. About 96% of S&P 500 companies ended lower, leading to a 1.5% decrease in both the S&P 500 and Nasdaq at the closing bell, marking their largest fall since September 21.
S&P 500 Daily Candle Chart
Past performance is not a reliable indicator of future results
Bearish Engulfing Pattern
If we zoom into the S&P 500’s daily candle chart, we can see that yesterday’s price action formed a large bearish engulfing candle.
Yesterday’s range completely engulfs the prior four sessions – adding significance to the pattern.
Pattern’s of this nature tend to signal trend exhaustion and we could now see the S&P 500 enter a prolonged pullback after a stellar run higher during the last two months.
S&P 500 Daily Candle Chart (zoomed)
Past performance is not a reliable indicator of future results
Accelerated Selling into Closing Bell
Dropping down a couple of timeframes to the hourly candle chart reveals that the majority of yesterday’s bearish engulfing pattern formed during the last three hours of trading.
This accelerated selling into the closing bell was backed by rising volume – signalling intensified market activity and potentially indicating a strong conviction among traders towards the downside. The surge in volume accompanying the sell-off suggests increased participation, implying a shift in sentiment.
S&P 500 Hourly Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.