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Home Market Update: A Bearish Engulfing
Economy

Market Update: A Bearish Engulfing

The User's Profile Adam Taggart May 15, 2020
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Despite market prices remaining at maximum stupid heights, we’ve seen some notable weakness, volatility and a rare ‘bearish engulfing’ this week.

All of these are advance indicators we would expect to see preceding a fall in prices.

So, what exactly is a ‘bearish engulfing’?

It’s a term used by technical analysts to describe a relatively infrequent event when a rise in price is immediately eclipsed by a larger drop in price, suggesting that sellers now outnumber buyers:

(source: MarketWatch.com)

In addition to the above, the markets have struggled to move higher all week.

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