Elliott Wave: S&P 500 (SPX) concluding impulsive advance before larger correction [Video]

The short-term Elliott Wave view for the S&P 500 (SPX) indicates that the cycle from the June 9 low is approaching maturity. The structure is close to completing a five-wave impulsive sequence. From that low, wave (i) ended at 7579.93, followed by a corrective decline in wave (ii) that finished at 7313.92. The Index then advanced in wave (iii), reaching 7816.7, as shown in the one-hour chart. A subsequent pullback unfolded, and wave (iv) is proposed to have completed at 7611.07. At this stage, the Index must break above the prior peak at 7816.7 to to rule out a double correction.

In the near term, as long as the pivot at 7611.07 remains intact, the expectation is for the Index to extend higher. This move would complete wave (v) and finalize the cycle from the June 9 low. Once wave (v) concludes, a larger degree three-wave correction should follow, providing a necessary reset before the next directional phase develops. Alternatively, if the Index breaks below 7611.07, the implication is that wave (iv) is undergoing a double correction. In that case, further consolidation would be required before the rally resumes. The level at 7611.07 therefore serves as a critical pivot, guiding whether the current cycle ends with wave (v) or extends the corrective sequence in wave (iv).

S&P 500 60-minute Elliott Wave chart

SPX Elliott Wave [Video]