We certainly had an action packed day on Friday. The market was already flashing signs of a reversal, based on all the bearish candlesticks I mentioned Thursday night. It looks like Intel’s news may have provided the spark to exhaust this latest rally attempt. We had a textbook one-day reversal on Friday, and all the major indices made bearish engulfing patterns.

I’ve been keeping a close watch on the S&P 500 and marvelling at how it just would not participate in last week’s rally. The weekly chart illustrates how flat the S&P 500 has been since June. Note how many bearish candlesticks (spinning tops, doji, and hanging men) there are since June and that we haven’t had a weekly close over 1,000:

S&P 500 Weekly

It’s also worth noting that the financials have been lagging considerably. They really fell apart on Friday — not what the bulls want to see.

BKX Daily