S&P 500 The Bear Engulfing top and reversal candle is still in play. S&P 500 needs to close above its peak to cancel it.
For that scenario to play out it requires for S&P to close above resistance at 4,540 in the first place, and that seems to be a bit of a struggle.
A close above 4,540 is likely to also take out the Bear Engulfing peak at 4,607
The Index rejection at the 4,540 resitance ant the RSI rejection at the 60 threshold are signs of weakness i.e., sentiment is negative.
RSI is testing its lower rising trendline and a close below is likely to send it back below 40 threshold thus further underlining the negative outlook.
Key support on the S&P 500 at 4,340 could thereby be tested.