SP500 – Daily Analysis
In this update, we conduct a comprehensive technical assessment utilizing our core methodologies—candlestick pattern recognition, multi-frame technical indicators, and Elliott Wave analysis—to outline potential market trajectories and identify key inflection points.
Exclusive analyses covering the S&P 500, Nasdaq, Dow Jones, Russell, and other instruments are available for our members.
CANDLES
Today’s closure was bearish, but the index still needs a strong follow-through tomorrow to confirm any real downside intent. The 2D frame closed bullish-neutral, while the 3D frame was outright bullish. Unless we see a sharp 1.7% sell-off tomorrow, the 8D frame will likely print a bullish continuation candle. Given last week’s very strong bullish closures on both the monthly and weekly frames, the overall odds still heavily favor the bulls, and this pullback will likely prove short-lived.
At this stage, the long-term trends remain firmly bullish and are well-positioned to hold that stance throughout the summer—if not longer.
Elliott Waves
At this stage, supported by several indicators, it appears that wave 3 is not yet complete. I expect at least one more push higher—likely wave v of 3—to finish the structure. A conservative estimate suggests there’s still about 3% or more upside potential before this wave fully matures.
SUMMARY
The S&P 500 and other major indices formed bearish candle today, but the initial move is yet to be confirmed. The overall odds and trends support a continued move higher.
As of the July 2 close, the Swing Room was long on SPY.
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Happy Trading!
