S&P 500 ETF $SPY Blue Box Area Offers A Buying Opportunity

Hello everyone! In today’s article, we’ll examine the recent performance of S&P 500 ETF ($SPY) through the lens of Elliott Wave Theory. We’ll review how the rally from the October 2025 low unfolded as a 5-wave impulse followed by a 7-swing correction (WXY) and discuss our forecast for the next move. Let’s dive into the structure and expectations for this ETF.

5 Wave Impulse + 7 Swing WXY correction

$SPY 1H Elliott Wave Chart 11.03.2025:

In the 1-hour Elliott Wave count from Nov 03, 2025, we saw that $SPY completed a 5-wave impulsive cycle at blue (iii). As expected, this initial wave prompted a pullback. We anticipated this pullback to unfold in 7 swings, likely finding buyers in the blue box equal legs area between $676.59 and $670.38.

This setup aligns with a typical Elliott Wave correction pattern (WXY), in which the market pauses briefly before resuming its primary trend.

Conclusion

In conclusion, our Elliott Wave analysis of S&P 500 ETF ($SPY) suggests that it remains supported against October 2025 lows. As a result, traders should keep an eye out for any corrective pullbacks that may offer entry opportunities. By applying Elliott Wave Theory, traders can better anticipate the structure of upcoming moves and enhance risk management in volatile markets.

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