I’ve stated repeated that bearish engulfing candlesticks are not unusual & that the means absolutely nothing unless they come at the end of a prolonged uptrend/bull market as they are potential TOPPING (reversal) sticks. Hence, zero significance on any that don’t come at a new high & even then, from there you need to see red candles that follow to help confirm the bearish engulfing may have marked a top.

I also say how the R/R on shorting them (again, if & only if they come at the top of a prolong & extended uptrend with other supporting technical evidence of a potential top such as negative divergences, overbought conditions, preceding deterioration in market internals, etc..) is one of the best in trading since the profit potential (well into the double-digits) for shorting vs the loss potential (of typically just a couple of percentage points) is one of the best in trading.

As of now, the bearish engulfing candles on the daily charts of QQQ, SOXX & many individual semis from July 11th are still well-intact as is the BEC that NVDA put in on June 20th (which was already followed by a 34% drop & we milked every cent on that short covering/reversing the morning of THE low).

Also HYG high yield credit has a positive divergence making new highs while SPY and QQQ have not. Points to markets going higher from here at least until after Labor Day wknd :)