On August 2, the S&P 500 E-Mini futures (ES) pulled back to 6239.50, marking the low of wave 4. Wave 5, now underway, is unfolding as a five-wave diagonal pattern. A defining trait of a diagonal is the overlap between wave ((i)) and wave ((iv)) within its internal structure. From the wave 4 low, wave ((i)) peaked at 6508.75, followed by a retreat to 6362.75, concluding wave ((ii)). The index then resumed its upward trajectory in wave ((iii)), which itself contains a five-wave subdivision. From wave ((ii)), wave (i) reached 6424.25, and a brief dip to 6364 completed wave (ii).
The index climbed again in wave (iii) to 6496.25, with a subsequent pullback in wave (iv) ending at 6430.75. The final leg, wave (v), concluded at 6523, completing wave ((iii)). Wave ((iv)) then unfolded as a zigzag Elliott Wave structure. From wave ((iii)), wave (a) dropped to 6488.75, wave (b) rallied to 6505.75, and wave (c) declined to 6455.5, finalizing wave ((iv)). In the near term, as long as the pivot low at 6363 holds, any dips should find support in a 3, 7, or 11-swing pattern, setting the stage for further upside. This outlook supports continued bullish momentum in the index.
S&P 500 E-Mini Futures (ES) – 60 Minute Elliott Wave Technical Chart:
