S&P 500

The daily sentiment index for the S&P 500 and NASDAQ touched 93% Bulls, meaning that 93% of traders polled were bullish and this is an extremely high reading. The RSI at 76 and the possibility that we may complete a 5 wave advance as shown on the chart below can mean that a short-term correction can set in. This may simply be wave 1 of 5 and we may get a pullback in wave 2 of 5. The short-term wave structure shows that there may still be a few more up down moves left before we complete minor wave v of 1. So a US sell-off is not imminent, but the data points put us pretty close to the possibility.