potentially bearish pattern

Forexgen and Hanging Man is a potentially bearish pattern which occurs during an uptrend. It is named because it looks like a hanging man with dangling legs.

Recognition Criteria:

• A long lower shadow which is about two to three times of the real body.
• Little or no upper shadow.
• The real body is at the upper end of the trading range.
• The color of the body is not important, though a black body is more bearish than a white body. (Confirmation is suggested.)

Engulfing is a reversal pattern, especially after a prolonged trend. It has a long body that totally engulfs the prior day's body.

Recognition Criteria:

• The first day's color indicates the trend of the trading day.
• The second real body should have the opposite color of the first real body.
The second day's body should completely engulf the previous day's body.

Consumers cut spending

Housing, consumer spending and business investment all weakened sharply last month as the dizzying downward spiral of the world's largest economy gathered speed, data showed on Wednesday.

Economic reports also showed unemployment rolls remained swollen at recessionary levels in the latest week, providing further support to economists who think the U.S. economy has entered its worst downturn in decades.

Consumer confidence fell to a 28-year low in November and tumbling durable goods orders for October illustrated the severe constraints on the economy as households and businesses alike cut spending plans on costly manufactured goods.

Orders for durable goods such as cars, machinery and computers dropped 6.2 percent in October, more than twice as much as Wall Street economists had forecast, as demand weakened across nearly every major sector of manufacturing.

The report's proxy for businesses' investment intentions, orders for non-defense capital goods excluding aircraft, fell 4 percent in October after decreasing 3.3 percent in September.

The slew of weak data pushed the prices of U.S. government bonds sharply higher and the dollar gained against the currencies of major trading partners. U.S. stocks also rallied on strength in the tech sector after Tuesday's sharp sell-off.

The deluge of data included a report from the Institute for Supply Management-Chicago showing business activity in the U.S. Midwest contracted in November at a more severe rate than expected.