A bearish engulfing pattern made today where the black real body ( distance between open to close ) engulfs the real body of the previous days candle.The Engulfing Bearish pattern is commonly found at market tops and at the beginning of a bearish price decline.
This may well be " Last Engulfing Bearish pattern" since the correction is on from 11226 and is more than two months old.. A bearish englufing pattern after an extended down trend represents the bears final attempt to drive the market price lower. If one is short and a Last Engulfing Bearish pattern forms, one should identify a protective stop level near the highs of the Last Engulfing Bearish pattern to protect any profit in the trade. Positive divergence on the OBV supports this view.
The flag pattern is still valid so bears need to be alert for a change in sentiment.
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