S&P 500 ETF SPY Elliott Wave trading setup explained

As our members know we have had many profitable trading setups recently.  In this technical article, we are going to talk about another Elliott Wave trading setup we got in S&P 500 ETF. SPY  has completed its correction exactly at the Equal Legs zone, also known as the Blue Box Area. In this article, we’ll break down the Elliott Wave forecast, explain the trading setup in detail, and provide the upside target.

SPY one-hour update 11.07.2025

SPY ETF is currently forming a 3-wave pullback, unfolding as a Double Three pattern. The extreme zone (Equal Legs) has already been reached in the 663.57–652.77 area. The minimum requirements for the pattern are there as we can now count a sufficient number of swings. We have entered long positions around the Equal Legs 663.57 level.

We recommend that members avoid selling SPY at this stage and expect at least a three-wave bounce from the Blue Box. Once the price reaches the 50% Fibonacci retracement level against the red X connector, we will make the position risk-free by moving the stop-loss to breakeven and taking partial profits.

SPY one-hour update 11.07.2025

SPY found buyers as expected at the Blue Box area, making decent bounce. The price has reached and exceeded 50 fibs from the X red connector. Consequently, any long positions from the Blue Box should now be risk-free. We’ve set our stop loss at breakeven and have already secured partial profits. While above the last low 661.25 low we count (4) blue correction completed. Wave (5 ) can be in progress toward new highs, targeting 696.53- 707.42 area.