SP500 – Monthly Analysis
August closed with SPX pressing its advantage, but the next few candles can still rewrite the quarter. This monthly reads the tape across frames to mark the levels that matter, the timing windows that bite, and the traps most won’t see until it’s too late. If you want to be early instead of chasing, start here.
Candles
The S&P 500 closed August with a strong run of bullish candles on the 15D, monthly, and larger frames. Long-term odds are firmly bullish, with a continued rally likely through year-end and potentially into 2026.
Under the hood, most sectors also closed with solid bullish signals, reinforcing the case for strength to persist.
Friday’s daily candle was bearish, but unconfirmed, keeping the short-term read closer to neutral.
Short term: neutral, slightly bullish.
Mid/long term: bullish.
ELLIOTT WAVES
Long Term
The long term outlook for SPX remains unchanged.
Mid-Term
At this point, the index could be forming wave v of 3 in purple or wave 5 in green.
At the micro level, SPX likely formed an impulsive advance (blue) and is now developing a corrective wave (ii).
SUMMARY
The S&P 500—and the broader market—continues to show strong bullish momentum, confirmed across multiple larger frames at the August close. While the daily print showed some indecision and a hint of near-term weakness, all trends, including the daily, remain firmly bullish, and the technicals provide solid underlying support.
From an Elliott Wave perspective, SPX is advancing in an impulsive sequence, punctuated by corrective pauses or extensions—a constructive, bullish pattern. With Technology, Financials, Communications, and Healthcare leading, the S&P 500 and other major U.S. indices stay aligned with a long-term bullish configuration. The market’s structure remains sound—unless and until new signals emerge to challenge this view.
Happy Trading!
