Today is what is known as an “engulfing candlestick” day. Prices gapped higher at the open above yesterday’s prices and then finished lower than yesterday’s low. This is a bearish reversal candle that completely “engulfs” the previous day’s upbeat market move. And as I stated on the last update, the count would start to look better if we had a lower low to form some kind of decent impulse lower. Today was a good day in the bearish direction to fulfill that pattern.
