Bullish sentiment on this chart has finally broken down and moved beneath the 50RSI mark. Its still above a typical "bounce" point. So this chart supports a further move down to more bearishness.
As my notes on the chart say, the SPX has fallen only 30-some points from its high (today's prices not the recent 903 low) yet this chart shows bearishness is getting lower. Yet prices are not too bad in the overall scheme of things. Just might be a nice clue that this setback is just an ABC correction that will turn back to bullishness soon enough.
EWI shows the Daily Sentiment Index (DSI) is back down from 86 to 68 so that has started to correct. No telling where that needs to go for a turn back up in a P2 wave.
Question is again, how much will price retrace? Well, sentiment on this chart went way down and price is still above the 50 and 200 DMA.
So its a matter of total volume (particularly to the downside) and support. So far everything seems in line for a bit more of a bearish pullback to get to that bearishness that allows a bullish turn. How much and how extreme? I'd guess the market finds its ultimate support at yet again at 875 or above. Its a logical guess. Why? Well the market is about ready to have a 50/200 crossover and I cannot see it getting too far out of hand to the downside if that's going to come in play for the rest of the move of P2 to final peak this summer which I think it will.
PS - I had favored a bullish extreme over the last few weeks to happen sooner rather than later and a move toward 1000 that never quite made it obviously. I can live with 956 being a P2 top, but I cannot say it is so at this point. Obviously more of a price retrace toward at least a 38% target 1014 would be more satisfying for P2. The market left us hanging and wondering, which of course, it likes to do just when we think we have it nailed down.