SP500 is making a very nice move to the upside, with price trading at new highs after the perfect rebound following the ending diagonal back at the end of March. Since then, we have seen higher highs and higher swing lows without overlaps in the middle of the move, which clearly points to an impulsive structure. It now looks like we are dealing with an extended fifth wave, possibly still within wave three, which could extend even further toward the 7500 area where we see the upper line of the impulsive channel. Up there, traders should be aware of a possible slowdown, likely for a new higher degree wave four correction. Once the index breaks below the supporting trendline, that’s when we could expect a deeper retracement into wave four, possibly back toward the 7200 area where new opportunities on dips may appear.
On a higher TF, there is room for 7600-7700 area.
SP500 video is here
Big Picture:
SP500 is unfolding an extended bullish impulse within wave III, which can come to an end sometime in 2026.
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