SP500 – Daily Analysis

CANDLES

Today, the S&P 500 had a mixed closure. The daily candle was rather neutral and could flip either way depending on tomorrow’s move. The 2D candle was bullish, and a move higher is expected. However, even if the index rises, it may not result in a green continuation candle.

The next 2D candle needs to close above $5499.53 to form a bottom. The weekly requirement for a bottom is about 100 points higher. The next two days could be crucial for forming a mid-term bottom if there is a strong rally.

While the short-term outlook is bullish, leaning toward neutral, and the index may move higher, it will likely be capped by one of the strong resistance lines discussed earlier. The mid- and long-term outlooks remain increasingly bearish.

S&P 500

(no changes in this section, just refreshed the charts)

There are currently three most probable paths on the table, with the red count as the primary scenario. The red zigzag could represent wave A of a much larger corrective structure outlined in purple. The blue path remains a possibility but is nearing invalidation.

SUMMARY

SPX and all major indices continue to hold a bearish stance on the weekly, 10-day, and larger time frames. Although shorter time frames show moderate bullishness, that momentum appears to be losing steam. From an Elliott Wave standpoint, the recent upward move looks corrective—potentially forming a zigzag as wave (A) in red or wave A in purple.

The index could be transitioning into a mid-term consolidation phase, with sideways movement that may persist for several weeks or even months, following the purple scenario.

Happy Trading!

Membership Levels