Risky daily candles on SPX and NDX
- Stephen Suttmeier
- Nov 17, 2025
- 1 min read
Friday's gap lower and ensuing recovery seemed bullish on the surface but create two-day bearish continuation candle patterns on the S&P 500 (SPX) and NASDAQ 100 (NDX) that could provide an overhang for the U.S. equity market entering the week.
The S&P 500 (SPX) held above the prior Friday's (11/7) hammer low at 6631 on last Friday's (11/14) intra-day gap lower and decline to 6646. The ensuing rally created a solid white candle on Friday, but one that could not overcome the big dark candle from Thursday, with the SPX closing between Thursday's low and Thursday's close on Friday. This creates daily in-neckline pattern, which is a bearish continuation pattern (Chart 1). In addition, the SPX closed below its 13-, 26-, and 40-day moving averages (DMAs) from 6801.82 down to 6734.45. A failure to decisively regain these DMAs, would provide a tactical overhang for the SPX, with the 6631 to 6550 area a big support zone (Chart 2)
Chart 1: S&P 500: Daily candlestick chart
Chart 2: S&P 500: Weekly candlestick chart
The NASDAQ 100 (NDX) also formed a bearish in-neckline candlestick pattern on Thursday and Friday (11/13 and 11/14). Similar to the SPX, the NDX closed below its 13-, 26-, and 40-day moving averages (DMAs) from 25,507 down to 25,084. A failure to decisively regain these DMAs, would provide a tactical overhang for the NDX, with the 24,600 to 24,200 a big support zone.
Chart 3: NASDAQ 100: Daily candlestick chart
Chart 4: NASDAQ 100: Weekly candlestick chart
Hey Steve, Did you make a typo below, should that be 6631 and not 6331:
In addition, the SPX closed below its 13-, 26-, and 40-day moving averages (DMAs) from 6801.82 down to 6734.45. A failure to decisively regain these DMAs, would provide a tactical overhang for the SPX, with the 6331 to 6550 area a big support zone (Chart 2)