The short-term sequence of the S&P 500 (SPX) from the November 21, 2025 low reveals a diagonal Elliott Wave structure currently unfolding. A diagonal is characterized by five waves, with the distinctive feature of overlapping between waves one and four. From the November 21 low, wave ((i)) advanced to 6903.46, followed by a corrective pullback in wave ((ii)) that concluded at 6719.8. The Index then resumed its upward trajectory in wave ((iii)), which subdivided into an impulsive structure. Within this advance, wave (i) terminated at 6815.19, while wave (ii) dipped to 6758.5. Momentum strengthened as wave (iii) extended higher, reaching 6882.03, before a modest retracement in wave (iv) ended at 6868.81.
The final leg, wave (v), carried the Index to 6945.77, completing wave ((iii)). A corrective phase then emerged in wave ((iv)), unfolding as a zigzag Elliott Wave structure. In this decline, wave (a) ended at 6888.76, wave (b) rebounded to 6913.71, and wave (c) dropped to 6824.31, thereby completing wave ((iv)). The S&P 500 has since resumed higher in wave ((v)). From wave ((iv)), wave (i) advanced to 6965.69. A pullback in wave (ii) is anticipated, with buyers expected to emerge in three, seven, or eleven swings, supporting further upside potential.
