Monday, June 21, 2010

Stocks Open Higher But Close Down For the Day




Stocks gapped up significantly higher today on the open but by the close the S&P500 was down on the day. If you look at the above chart you will notice that last week we had two doji-like candles and today we had a bearish engulfment pattern. The fact that the bearish engulfment is taking place right  at the 50 day moving average is significant. This tells me that the stock market may be under selling pressure for the next few days.

A move below today's low will confirm the bearish engulfment and may trigger a multi day sell off. Lets see what happens tomorrow.

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