Join Tom as he covers key inflation data, earnings season highlights, and sector rotation trends. He breaks down recent price action in major indexes like the S&P 500 and Nasdaq, with a close look at the 20-day moving average as a support gauge. Tom spotlights standout industry groups such as gambling, semiconductors, software, and aerospace, and shares charts of top-performing stocks like Goldman Sachs, Johnson & Johnson, and PNC. Tom highlights under-performing areas like insurance brokers and home improvement, then reviews several strong earnings reactions, including Monarch Casino’s 15% after-hours gain.

This video was published on July 17, 2025. Click this link to watch on Tom’s dedicated page.

Missed a session? Archived videos from Tom are available at this link. 

There is no denying that the broad markets remain in a resilient uptrend off the April 2025 low.  But if there’s one thing I’ve learned from many years of analyzing charts, it’s to remain vigilant during bullish phases.  Even though I’ll assume the uptrend is still intact, that doesn’t mean I can stop looking for signs of potential weakness!

With that in mind, here are three bearish candle patterns that often pop up during bullish market phases.  By looking for these patterns in the stocks and ETFs that you own, you can hopefully get ahead of any corrective moves and take profits before it’s too late!

The Shooting Star Pattern

If you see a long upper shadow, little to no lower shadow, and the open and close are close together near the bottom of the day’s range, then you have identified a shooting star candle pattern.  If you’re familiar with the hammer candle pattern, then you can think of this as a hammer candle but basically everything is upside down!

The chart of AT&T (T) has featured a number of shooting star candles so far in 2025.  Just before the selloff in early April, there was a clear shooting star candle after the March rally.  Then during the rally off the April low, a shooting star pattern in early May suggested that the uptrend phase was nearing an exhaustion point.

The Bearish Engulfing Pattern

One of the most recognizable patterns in the candlestick library, the bearish engulfing pattern represents a short-term rotation from accumulation to distribution.  Basically, a large up candle is followed by a large down candle, and the second day’s “real body” (the open-to-close range) engulfs the range of the first day’s real body.  

Look at the strength in the uptrend for Paramount Global (PARA) going into early June.  Then just before the 4th of July weekend, a bearish engulfing pattern suggests a change of character as the bears take control.  It’s worth noting that these candle patterns are not long-term signals, but rather indicate short-term dynamics.  So a bearish engulfing pattern suggests weakness for the next one to three bars.

The Evening Star Pattern

If you took the bearish engulfing pattern, and then added another small candle in the middle of those two days, then you’d have an evening star pattern.  Now most candlestick textbooks will tell you that the “star” day in the middle should include a gap, so there’s no overlap between that day’s range and the other two candles.  In practice, I’ve found most people ignore this detail and rather look for patterns with enough similarities to this basic structure.

Going back to the AT&T chart we used earlier, we can see an evening star pattern at the end of June.  A big day is followed soon after by a big down day, with a small candle in the middle.  This is a great example of where additional weakness led the price below the 50-day moving average, serving to confirm the bearish outlook as represented by the evening star pattern.

It’s so easy to become complacent during an extended bull market rally.  Investors that regularly scan for bearish candle patterns have an edge, as they can anticipate potential turning points before the uptrend changes in dramatic fashion to a new downtrend phase!

RR#6,

Dave

PS- Ready to upgrade your investment process?  Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

marketmisbehavior.com

https://www.youtube.com/c/MarketMisbehavior

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice.  The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.  

The author does not have a position in mentioned securities at the time of publication.    Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

One great habit to develop as an investor is regularly scanning the stock market. Whether you’re checking for stocks that are outperforming a benchmark, gapping up, reversing, or breaking out of a trading range, scanning keeps you in the loop and, importantly, helps you stay sharp and spot potential opportunities early on. 

During one of our routine scans, one stock stood out: Rigetti Computing, Inc. (RGTI), a company in a fast-moving quantum computing space. On Wednesday, RGTI closed the day up 30%, which turned some heads. What’s behind the move? Rigetti announced significant improvements in its platform, better performance metrics, and the 36-qubit system, a technical milestone in the quantum world.  

Should You Invest in RGTI?

If you ran any of the bullish predefined scans on StockCharts, you may have noticed RGTI popping up. That alone is a good reason to take a closer look at RGTI stock’s price action.

Looking at the daily chart of RGTI, the stock had a nice ride in late 2024. However, things cooled off in early January 2025 and, since then, the stock has been trading sideways until this week. On Wednesday, RGTI gapped up with strong volume, breaking out of that sideways range.

FIGURE 1. DAILY CHART OF RGTI STOCK. Since its rise in late 2024, the stock has been trading sideways until Wednesday, when it broke out of that range. Chart source: StockCharts.com. For educational purposes.

Back in June, RGTI bounced off its 50-day simple moving average (SMA), which is starting to slope upward—a healthy technical signal. With Wednesday’s price move, RGTI is above its May 27 and July 8 highs.

RGTI’s price isn’t too far from its all-time high, set in January. If the stock breaks above that level and has strong momentum, we could see it push to new highs. The Relative Strength Index (RSI) and Percentage Price Oscillator (PPO) are showing early signs of positive momentum.

On the other hand, if the stock pulls back and Wednesday’s gap up doesn’t get filled, RGTI could reverse either at the May 27 or July 8 high. A reversal with a rise in momentum on the reversal would confirm an upside follow-through. If RGTI falls below the trendline, fills Wednesday’s gap up, and finds support at the 50-day SMA, it could go back to trading sideways, waiting for the next catalyst. A decline below the 50-day SMA would invalidate the uptrend.

A Rising Tide in Quantum Stocks?

Other stocks in the Quantum Computing space, like IonQ, Inc. (IONQ) and D-Wave Quantum, Inc. (QBTS), also saw gains on Wednesday.

Quantum computing stocks can be a bit of a roller coaster; they rallied at the end of 2024, dipped earlier this year, and are now gaining ground, thanks to encouraging news on quantum computing developments. The technology is in its early stages and could take years before it’s truly mainstream. So while these stocks are gaining attention now, the momentum may not be consistent.

If you’re a long-term investor with patience and curiosity, it may be worth adding RGTI, QBTS, ION, and others to your ChartLists. Track them regularly and watch for continued technical strength or signs of trend reversals. 

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Join Grayson as he shares how to streamline your analysis using custom ChartStyles. He demonstrates how to create one-click ChartStyles tailored to your favorite indicators, use style buttons to quickly switch between clean, focused views, and build a chart-leveling system that reduces noise and helps you stay locked in on what matters most.

This video originally premiered on July 16, 2025. Click on the above image to watch on our dedicated Grayson Roze page on StockCharts TV.

You can view previously recorded videos from Grayson at this link.

This week, Joe analyzes all 30 Dow Jones Industrial Average stocks in a rapid-fire format, offering key technical takeaways and highlighting potential setups in the process. Using his multi-timeframe momentum and trend approach, Joe shows how institutional investors assess relative strength, chart structure, ADX signals, and support zones. From Boeing’s triple bottom to Nvidia’s powerful trend, not to mention Microsoft’s key pullback level, this session is packed with insights for traders looking to stay in sync with the market’s leaders and laggards.

Joe has been working with institutional portfolio managers for the past 35 years, and this video shows the type of reads he gives to them during their phone calls.

The video premiered on July 16, 2025. Click this link to watch on Joe’s dedicated page. 

Archived videos from Joe are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show.

From the S&P 500’s pause within a bullish trend, to critical support levels in semiconductors, plus bullish breakouts in Ethereum and Bitcoin, Frank highlights how the market’s recent consolidation may lead to major upside. In this video, Frank explores how to use StockCharts to layer chart annotations, trend indicators, and pattern analysis for stronger evidence-based decisions. He also compares current chart structures to 2020-2021 in order to better understand what could be next.

This video originally premiered on July 16, 2025.

You can view previously recorded videos from Frank and other industry experts at this link.

Unlock the power of automated options trading with Tony Zhang, Chief Strategist at OptionsPlay. In this exclusive training, Tony reveals how the OptionsPlay Strategy Center, integrated with StockCharts.com, transforms the way traders find, analyze, and execute options strategies.

Follow along as Tony illustrates how to use OptionsPlay and StockCharts eliminate manual scans, reduce time spent digging through option chains, and zero in on high-probability trades with real-time, personalized insights. Throughout the video, Tony will explore how you can:

• Automate strategy selection using technical scans.
• Identify optimal call and put spreads with the best risk-reward ratios.
• Generate income through conservative covered calls.
• Integrate your scans with personalized watchlists and chartlists.

Whether you’re selling credit spreads, buying calls, or seeking income from covered calls, this tool will change the way you trade — forever.

Check out the OptionsPlay plugin for StockCharts here!

This video premiered on July 15, 2025.

Relatively healthy earnings reports from the big banks and a June inflation report that came in line with analyst expectations didn’t give the stock market much of a lift, as the S&P 500 ($SPX) and Dow Jones Industrial Average ($INDU) both ended the day lower. The only major index to shine was the Nasdaq Composite ($COMPQ), which closed at a record high.

Technology stocks were the stars of the show. It wasn’t a blowout rally, but the sector still managed to finish in the green. Why? There were a couple of key developments that gave tech a nice boost.

First, semiconductors got some breathing room. Restrictions on chip sales to China were relaxed, and that gave big names like NVIDIA Corp. (NVDA) and Advanced Micro Devices (AMD) a reason to rally. 

Second, there’s a push from the government to invest in AI and energy initiatives in Pennsylvania. One of the biggest winners was Super Micro Computer, Inc. (SMCI), which jumped 6.9% — the biggest percentage gain in the S&P 500. You can see from the StockCharts MarketCarpet for the S&P 500 stocks that, besides the top-weighted stocks in the index, it was mostly a sea of red.

FIGURE 1. MARKETCARPET FOR TUESDAY, JULY 15. Technology was the clear leader, with the largest cap-weighted stocks leading the sector higher.Image source: StockCharts.com. For educational purposes.

Semiconductors Show Strength

If you’ve been watching semiconductors, you may have noticed that the SPDR S&P Semiconductor ETF (XSD) has been on a roll. Since April, the ETF has stayed above its 20-day exponential moving average (EMA). The relative performance of XSD against the SPDR S&P 500 ETF (SPY) has been improving, and its relative strength index (RSI) is at around 62, an indication that momentum is at healthy levels (see chart below). It’s important to note that since May, the RSI has remained above 50, which is supportive of XSD’s upside movement.

Note: StockCharts members can access this chart from the Market Summary page or the Market Summary ChartPack (under US Industries > Bellwether Industries).

FIGURE 2. DAILY CHART OF XSD. Since April, XSD has been trending higher and is now trading above its 21-day EMA.Chart source: StockCharts.com. For educational purposes.

How to Track Semiconductor Stocks

If the environment for semiconductors remains strong, there could be more upside for stocks in that space. A simple way to keep tabs on the stocks using StockCharts tools is to create a ChartList of semiconductor stocks you’re interested in owning.

• Begin by heading to the US Sectors panel in the Market Summary page or the Sector Summary page on your Dashboard.
• Click Sector Drill-Down > Technology Sector Fund > Semiconductors.
• You’ll see the list of semiconductor stocks that make up the industry group.

From there, I prefer to sort the data by the Universe (U) column, starting with the large caps and then the StockCharts Technical Rank (SCTR) score to find large-cap technically strong stocks. You can then view the charts on the list. If you see a chart that appears to have a favorable risk-to-reward ratio, you can save it to your Semiconductor ChartList.

FIGURE 3. SEMICONDUCTOR STOCKS TO REVIEW. The sector drill-down will uncover stocks in leading sectors or industry groups. Scroll down the list to identify charts that meet your investment or trading criteria. Image source: StockCharts.com. For educational purposes.

As you review the charts in your ChartList, you can identify potential support and resistance levels and set alerts to notify you when prices reach your key levels. It’s a great way to stay proactive.

The Bottom Line

This type of top-down analysis helps you stay one step ahead of the market. Start with the broad market, then narrow down to sectors, then industry groups, and then individual stocks. By taking a proactive approach to managing your investments, you’re always preparing for the stock market’s next move.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Join Dave as he reviews three common candle patterns traders can use to identify potential turning points. From bullish engulfing patterns to evening star patterns, Dave gives insights on how to leverage these powerful candle signals to anticipate market shifts. He also shows combining candle patterns with conventional technical analysis tools can help improve success rates.

This video originally premiered on July 14, 2025. Watch on StockCharts’ dedicated David Keller page!

Previously recorded videos from Dave are available at this link.