S&P 500 Index – Bullish Weekly Morningstar Reversal Pattern

By | February 19, 2016

A morningstar pattern formed on the weekly S&P 500 chart similar to the one that formed in October 2014 at about the same level on the index. It reflects a transition from bearishness to bullishness and is considered a reliable reversal pattern, more significant in this case by its appearance at prior support.The doji of this three period candle series had a long tail, like the tails that marked important lows in 2014 and 2015.

99628.weeklyS&Pmorningstar

This market has a lot of work to do to repair recent technical damage but this morningstar could be the start of that process.

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