SPDR S&P 500 (SPY)

[Newly2b]

Good call on the potential Evening Star on the SPY Monthly, though I think it is a bit premature since to complete the formation, the third candle (currently forming) must intrude well into the first candle's real body and this is only the first day of the month.

That said, it does look promising. Volume is relatively light on the first candle, diminishing on the second as it should, but it remains to be seen whether volume increases on the third candle indicating a potential reversal is gaining strength.

Also note there is no gap between the real bodies of the second and third candle, which is not required for a valid formation but does weaken the effect. Will be interesting to see if that third candle reverses direction as the month progresses, negating the ES, or if perhaps it forms an Engulfing, which would be definitive. . .

Newly