S&P 500 holds bullish structure despite corrective pullback [Video]

Gregor Horvat Wavetraders

We talked about SP500 at the end of 2025, specifically on December 19, where we mentioned and highlighted that bulls are still here and we can expect more gains after a correction.

The S&P 500 returned to bullish mode in late November and approached previous all-time highs, yet failed to decisively break out. Instead, the recent deeper retracement still appears corrective — possibly a subwave (2) of 5 with solid support near 6800. A break below 6872 would complicate this structure, while the broader picture suggests the index is unfolding an extended bullish impulse within wave III that could continue into 2026.

As you can see, it's still holding up strong, and we should be aware of more gains within subwave (3) of a five-wave bullish cycle within wave 5, especially if breaks into 7k area.

Big picture

SP500 is unfolding an extended bullish impulse within wave III, which can come to an end sometime in 2026.

For a detailed view and more analysis like this, you can watch below our latest recording of a live webinar streamed on January 05 2026:

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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