Each of the sentiment indicators have cut below their 5-day EMAs generating a confirmed 'Sell' signal. While S&P downside is the obvious short term outcome there are positives to take home. The strongest point for bulls is sentiment has surpassed resistance levels which have marked this cyclical bear market. What will be important will be the levels these reach when support eventually kicks in as buyers return.

The Nasdaq tells the same story, although the Nasdaq has a substantial bearish divergence in the Percentage of Nasdaq Stocks above the 50-day MA.

So - at what point will buyers emerge? Sentiment suggests not for a time yet.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.