Today’s Chart of the Day was shared on Twitter by Aaron Jackson (@ATMcharts). Aaron shows the daily candlestick charts of three key industry groups; Semiconductors ($SOX), Banks ($BKX), and Industrials ($XLI). Aaron points out that all three are sporting a bearish candlestick pattern known as an Island Reversal. An Island Reversal is a candlestick pattern that is formed by two separate gaps, leaving an isolated cluster of candles or 'island.' Island Reversals often mark a change in the intermediate-term trend. In this case, price gapped higher on Monday, consolidated for four days, and then gapped lower today. Semis, Banks, and Industrials are all vital areas of the market. The fact that all three are exhibiting this bearish candlestick pattern is not an encouraging development for the Bulls.
Chart of the Day - Friday, May 1st, 2020
May 1, 2020
