S&P 500 Elliott Wave technical analysis
Function: Bullish Trend.
Mode: Impulsive.
Structure: Navy blue wave 1.
Position: Gray wave 3.
Direction next lower degrees: Navy blue wave 2.
Details: Gray wave 2 appears completed; navy blue wave 1 of 3 is now active.
Wave cancel invalidation level: 4796.
The S&P 500 daily chart shows a bullish wave structure with impulsive movement indicating strength. Navy blue wave one is forming within a larger gray wave three, following the completion of gray wave two. This marks the beginning of a potential sustained upward phase.
The wave count suggests gray wave two is done, transitioning into the initial stage of navy blue wave one. A breach of 4796 would invalidate this wave pattern, implying either a deeper correction or trend reassessment. The momentum behind this move indicates strong institutional buying support.
The likely next phase is navy blue wave two, a corrective step following the current advance. This setup helps traders align their strategy with the broader bullish cycle, where significant upside potential remains as long as support holds above the invalidation level.
Traders are advised to watch price behavior for signs that wave one is continuing and remain alert to any dip below the 4796 level. The structure supports further gains but requires careful monitoring for trend consistency and reversal cues.
S&P 500 Elliott Wave technical analysis
Function: Bullish Trend.
Mode: Impulsive.
Structure: Navy blue wave 1.
Position: Gray wave 3.
Direction next lower degrees: Navy blue wave 2.
Details: Gray wave 2 appears completed; navy blue wave 1 of 3 is now active.
Wave cancel invalidation level: 4796.
The S&P 500 weekly chart confirms a bullish structure, with navy blue wave one developing as part of a larger gray wave three. The chart reflects a completed gray wave two and indicates a strong upward impulse now in play, which could extend significantly before correcting.
The analysis shows the shift from gray wave two into navy blue wave one, with an impulsive structure that highlights increased institutional buying activity. The move above 4796 would confirm continuation; any move below that would invalidate the count and call for reassessment.
This framework positions the S&P 500 in what is usually the most dynamic part of an Elliott Wave sequence. Traders should use this to assess opportunities while maintaining awareness of key support levels. The wave’s current progression suggests room for a prolonged rally.
Investors are encouraged to monitor price behavior for ongoing strength and confirm the wave’s continuation. Should 4796 be breached, a more complex correction could emerge. Until then, the setup favors the bullish scenario.
S&P 500 Index Elliott Wave technical analysis [Video]
