S&P 500

Yesterday I explained that the Nasdaq had a 5 wave decline on daily charts but a reversal was needed to mark it completing wave 1 and start wave 2 up. We are getting close to that with RSI at 18.9 and DSI at 10% bullish only. The chart of the S&P has similar readings with daily RSI at 17.65 and DSI at 10% bulls, meaning that only 10% of traders polled were bullish and this 8-10% range is where the Feb and March bottoms were made as well so that gives you perspective. Now the hourly chart below shows the markings of a 5 wave decline for the S&P where 5=1 has been achieved but since the intraday bounce from the lows is still a 3 wave corrective pattern, it is possible that wave e of 5 in an expanding ending pattern at the lows is one last push to the lows before we start wave 2 up. Now wave e can also truncate, or be short, so there is no level for it. We should start a bounce back for US equities based on this in wave 2 up.