Since reaching its low on April 7, 2025, the S&P 500 (SPX) has embarked on an impulsive rally. From that bottom, the index progressed through distinct waves, as defined by Elliott Wave theory. Wave 1 concluded at 5246.57, followed by a corrective pullback in wave 2, which found support at 4910.42. Currently, wave 3 is underway, unfolding as a strong impulse with subdivisions in a lesser degree.
From the wave 2 low, the rally continued with wave ((i)) peaking at 5481.34. A brief retracement in wave ((ii)) then followed which ended at 5101.63. The index then surged higher in wave ((iii)), reaching 5968.61. A subsequent pullback in wave ((iv)) found support at 5767.41, setting the stage for further gains. The index should push to a few more highs to complete wave ((v)) of 3. This will mark the culmination of this upward phase.
Looking ahead, once wave 3 concludes, a corrective wave 4 should follow, retracing part of the rally from the April 7, 2025 low. This correction could unfold in a 3, 7, or 11-swing pattern before the index resumes its upward trajectory. In the near term, as long as the pivot low at 5765.74 holds, the S&P 500 is poised to achieve additional highs to finalize wave ((v)) of 3. However, if this critical support at 5765.74 is breached, it would signal the end of wave 3, prompting a larger wave 4 pullback, potentially in a 3, 7, or 11-swing structure.
S&P 500 (SPX) 60-Minute Elliott Wave Technical Chart
