roguetraderone – While it certainly doesn’t help the bearish case, I don’t think the fact the $SPX didn’t also print a bearish engulfing stick along with the SPY means too much. I also noticed that on Friday & so I glanced the 1-minute charts & noticed that $SPX has some odd, unnatural opening well below where the SPY opened, yet SPX shot up to the same comparable level as the SPY immediately after opening. Therefore, the SPX candle seem to reflect some odd or erroneous print so again, in looking at the 1-minute charts of each on Friday, I think the SPY told the “true” story of what happened. Either way, without a red close today, those bearish engulfing sticks may prove to be moot.

interesting.. where did you find that info on dark pool trades?

last 3 days on spy sideways to down.. shows distribution at the highs.

Thanks SNP. Unfortunately I usually jump the gun.

I will await your other indicators and hope for a meaningful pullback. I am doubtful as every tiny dip is bought up but let’s see what next week brings. Turkey is a nato member so maybe that acts as a catalyst to the downside but guessing most americans don’t even know turkey from a turkey sandwich so probably does little if anything to pull the market down.

FB Daily also has bearish engulfing candle.

could be a Persian in gulfing candle

Be careful of what you wish for. I just did a quick search for “engulfing” to check the last few times it highlighted them on the front page. First one that came up was here in this July 24, 2015 post: Shorting XLF- Bearish Engulfing Candlestick (click on post title to view)
From there, XLF plunged 27% in just one month (given, there was a some flash-crash action that assisted that slide).

If you happen to think that top-call was random luck, the second one (again, under blog posts) was this post made the very day that the world’s largest company printed its all-time highs back on April 28, 2015: Bearish Engulfing Candlestick In AAPL (click on post title to view)
which resulted in a drop of 33% & a bump from the distinguished title of ‘the world’s largest company’.

Bearish engulfing candlesticks don’t always mark a significant top & when I see them, I wait for confirmation via one or two more red candles to confirm but they tend to be pretty powerful & fairly reliable sell signals, as you can see from the posts above, but only IF & WHEN confirm via other technical developments & events such as divergences, failed breakouts, etc…