Markets might seem like they turn on headline news, but the fact is, investor sentiment drives the action more often than not. And one of the cleanest ways to see sentiment changing in real time is through candlestick charts, starting from higher timeframes all the way down.
In a recent Market on Close livestream, Senior Market Strategist John Rowland, CMT, explained the anatomy of a bearish engulfing candle on the weekly chart of the Invesco QQQ Trust (QQQ) – the tracking ETF for the benchmark Nasdaq-100 Index ($IUXX). While the chart formation may look subtle at first glance, the implications beneath the surface are important for traders and investors heading into the next few weeks.
