Potential Bearish Eveningstar Pattern on S&P Chart

By | October 30, 2015

The sell-off in the last two hours of trading created a dark candle on the daily S&P 500 index chart, and possibly the final component piece of an eveningstar bearish reversal formation. The eveningstar pattern consists of a large white candle, followed by a narrow opening and closing range “doji” candle and completed by a large dark candle. Today’s overall range was not large relative to Wednesday’s white candle, but the presumed message is similar, a transition from bullishness-to-bearishness. The broader market just finished its strongest month in four years, so, as is the case with all candle formations and technical patterns: confirmation is a requirement.

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