The S&P 500 E-Mini Futures (ES) continues to advance, breaking into new all-time highs and confirming that the prevailing trend remains firmly bullish. The structure reflects an incomplete bullish sequence originating from the November 21, 2025 low, which provides the foundation for the current upward trajectory. From that low, the rally is unfolding as a five-wave diagonal, a formation consistent with Elliott Wave principles and often observed in strong trending markets.
Wave ((i)) concluded at 6975.25, marking the first leg of the diagonal. The subsequent pullback in wave ((ii)) unfolded as a zigzag corrective structure. Within this correction, wave (a) ended at 6817.5, followed by a rally in wave (b) that terminated at 6882.50. The final leg of the correction, wave (c), declined to 6771.75, thereby completing wave ((ii)) at a higher degree. This established a pivotal low that continues to serve as a critical reference point for the ongoing advance.
The index then resumed its ascent in wave ((iii)). From the completion of wave ((ii)), wave (i) ended at 6872, while wave (ii) pulled back modestly to 6857.5. Wave (iii) extended higher to 6990, followed by a brief consolidation in wave (iv) at 6974. The final push in wave (v) carried prices to 6994, completing wave ((iii)) at a higher degree. A corrective pullback in wave ((iv)) then ended at 6936, setting the stage for renewed strength.
In the near term, as long as the pivot at 6771.75 remains intact, pullbacks are expected to find support within the 3, 7, or 11 swing sequence. The potential upside target can be projected using external retracement levels of wave ((iv)). The 1.236% to 161.8% external retracement zone suggests a range between 7007 and 7029. This measured extension underscores the likelihood of further gains, provided corrective phases remain orderly and contained.
