Bearish Candlestick Breaks Below Support

The chart above of the S&P 500 ETF (SPY) shows a large bearish candlestick penetrating through the support line and closing below the support line. In fact the candlestick that broke through the support area was a closing bearish marubozu, meaning that bears pushed prices down to the very end of trading, bull were unable or unwilling to step in to buy at the support area like they did previously. This is a sign that the status quo is about to change, which was confirmed by a steep drop the next few trading days. Also notice the bull candle the following day – the bullish candlestick was unable to go above the recently broken support line. In fact, bears were now willing to sell or short to defend this historical support line which now becomes the overhead resistance line.