Bearish Eveningstar Pattern on the S&P 500 Chart

By | May 29, 2015

An eveningstar candlestick pattern has formed on the daily S&P 500 index chart. This is a three-day bearish reversal pattern that consists of a large white up day, followed by a narrow opening and closing range “doji” candle (in this case, a gravestone doji with the opening and closing range at the top of the overall range), and completed by a large dark down day. It represents a transition from bullishness to bearishness and is often seen at important tops.
Like any candle pattern it requires confirmation, but it is a caution flag.

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