SPY's Shooting Start
Shooting Star: Tuesday and 2012 looked like it was off to the races but this lasted on a short period as selling picked up after hitting 128.38. This price action has caused SPY to form a shooting star candle stick pattern. What this means is that buyers were in control earlier (which we saw with a 1%+ open) then sellers came in at 128.38 to take control of the market. The shooting star candle is bearish candle and either marks resistance or a trend reversal. For now lets say it is marking resistance at 128.38. Yesterday's strong morning also left SPY with a big gap below and with the presence of a hanging man on the chart it appears that SPY may move back towards 126.82.
Here's the chart on the SPY shooting star.
Here is more on the shooting star pattern courtsey of Stockcharts.com
The Shooting Star is a bearish reversal pattern that forms after an advance and in the star position, hence its name. A Shooting Star can mark a potential trend reversal or resistance level. The candlestick forms when prices gap higher on the open, advance during the session and close well off their highs. The resulting candlestick has a long upper shadow and small black or white body. After a large advance (the upper shadow), the ability of the bears to force prices down raises the yellow flag. To indicate a substantial reversal, the upper shadow should relatively long and at least 2 times the length of the body. Bearish confirmation is required after the Shooting Star and can take the form of a gap down or long black candlestick on heavy volume.