S&P 500 Ticker Symbol: SPX has completed its corrective pullback and is now trending higher. The broader bullish structure remains in place. The price respected the main support and confirmed the correction was completed. After wave ((i)) completed at the last high, the SPX indicator moved down in wave ((ii)). This decline appeared as a clear ABC correction. Wave A began to decline, followed by Wave B which created a temporary bounce. Wave (c) then pushed prices down towards the Fibonacci extension zone, eventually ending near the 1.618 projection around 6693. This zone also corresponds to the blue box support on the chart.
The price settled near its lows and started to rise. This reaction indicates that wave ((ii)) has already ended. From this bottom, the SPX now begins a new upward series in the black wave ((iii)). Within this, the first advance represents wave (i) followed by a shallow decline as wave (ii). As long as the price remains above the cancellation level of 6519.34, the indicator should continue rising in wave (iii) targeting the 100%-161.8% Fibonacci levels. Wave (i) extension area which will be a price range between 6854-6914. At this point, we do not recommend selling. The risk to reward ratio favors the upside. Any declines are expected to remain corrective and find support.
Overall, the Elliott wave structure supports further upside. The SPX appears poised to resume its broader uptrend.
Elliot wave [Video]
