Prices Slouch For Second Day As Bears Continue To Engulf Market
After a brief morning stop-sweeping push to new highs for the “new bull market”, the $SPX responded by plunging slightly more 1% over a thirty minute period. The index went on to spend the remainder of the morning and much of the midday chopping around in a tightening range before slipping to four day low at 2 PM. It spent the last two hours of trading retracing some of the late afternoon decline and ended the day down 0.56% at 997.08.
S&P 500 Posts Steepest Decline In Twenty One Days
The percentage decline was the largest one day drop since a nearly 2% drop in prices on July 7th. The 0.56% dropped ended a 21 consecutive day streak of managing to keep all declines less than a half of one percent. The longest such streak since October of 2006 and the third longest over the past ten years.
$SPX is currently still working a handful of other record breaking or near record breaking streaks, for example:
- 19 consecutive closes above the five day exponential moving average.
- 21 consecutive closes above the previous day’s low.
Bears Continue To Engulf Market
According to the stock scan over at stockcharts.com, today there were 76 and 133 bearish engulfing candle stick patterns in the Nasdaq Composite and NYSE respectively. This is up from 61 and 108 yesterday and continues to paint a picture of a market that is threatening to reverse. You’ll recall from yesterday’s note that a bearish engulfing candlestick pattern is a reversal indicator.
According to the screen there were only 14 bullish candlestick patterns today. 2 of the 14 were bear-themed exchange traded funds.
Hover over the symbols in the page linked to see charts of the 76 Nasdaq stocks with bearish engulfing candlesticks.
And the chart of the day is…
Coming Down From a Caffeine High
Bearish engulfing candlestick on Diedrich Coffee.
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