S&P 500 Index Elliott Wave technical analysis [Video]

S&P 500 Elliott Wave analysis

• Function: Counter-Trend.

• Mode: Impulsive as Wave C.

• Wave structure: Navy Blue Wave C.

• Current position: Gray Wave 2.

• Next higher degree: Gray Wave 3.

S&P 500 Elliott Wave summary – Daily perspective:

The S&P 500 is currently positioned in a counter-trend structure, moving through navy blue wave C, which is part of the larger gray wave 2. The preceding navy blue wave B appears to have ended, paving the way for this current impulsive phase within a broader corrective sequence.

As part of the ongoing correction, the wave C movement is anticipated to unfold in an impulsive form. This behavior is typical in the final leg of a correction and may help define the structure's completion before transitioning into gray wave 3.

Analytical insights:

• Wave C movements frequently appear as five-wave impulsive patterns and often complete complex corrections.

• Traders should remain alert for signals of structure completion to time potential re-entries or exits.

• Understanding the current wave's role within the broader count enhances both tactical and strategic decision-making.

Trading implications:

This chart setup offers important insights for investors managing near-term market volatility. As the index continues through this corrective stage, both short-term trades and longer-term strategies should consider the broader wave relationships. Awareness of key structural milestones is essential for navigating price action confidently.

S&P 500 Elliott Wave analysis

• Function: Counter-Trend.

• Mode: Corrective.

• Wave structure: Navy Blue Wave C.

• Current position: Gray Wave 2.

• Next higher degree: Gray Wave 3.

• Invalidation level: 3497.72.

S&P 500 Elliott Wave summary – Weekly perspective:

The S&P 500 is currently engaged in a corrective counter-trend phase, progressing through navy blue wave C, which is part of the broader gray wave 2 structure. The earlier navy blue wave B correction is now considered complete, signaling the beginning of wave C’s development within this higher-degree framework.

This wave C movement is expected to follow a corrective structure, often characterized by three-wave formations or sideways consolidation. The key invalidation point for the current analysis is set at 3497.72—a breach of which would nullify the existing wave count.

Analytical insights:

• Navy blue wave C plays a pivotal role in shaping intermediate market behavior and positioning within gray wave 2.

• Investors should stay alert for signals marking the end of this corrective leg before considering positions aligned with gray wave 3's expected direction.

• The weekly time frame allows for a broader view, supporting both short-term assessments and strategic long-term positioning.

Trading implications:

This setup supports a measured approach for position traders and long-term investors, as the index completes a transitional phase within its larger cycle. Monitoring wave characteristics is key to validating the unfolding structure and preparing for the potential transition into gray wave 3.

Technical analyst: Malik Awais.

S&P 500 Elliott Wave Analysis [Video]