Each candle on the SPX chart below represents 1/4 of one year.
- Q1 2015 is a spinning top candle (indecision)
- Q2 2015 is a shooting star (bearish warning)
- Q3 2015 is a bearish engulfing (bearish but needs a confirmation lower close)
- Q4 2015 is a bullish piercing pattern reversal candle, but such a candle is more effective after a decent drop, rather than stuck in a consolidation pattern at all-time highs
- Q1 2016 is a bearish hanging man (bearish but also needs a confirmation lower close on the next candle)
- Q2 2016 is an important candle, which will close this Thursday, June 30th, as it could be the bearish reversal confirmation candle that's needed for the Q1 candle—a lower close is required