SP500 – Daily Analysis
S&P 500 (SPX) paused, and this report examines whether the move is a healthy consolidation or the setup for a deeper drawdown. We break down the stock market outlook with multi-timeframe technical analysis—candlesticks, MACD/EMA signals, Elliott Wave counts, and key support/resistance—to outline the risk levels and scenarios for the days ahead.
CANDLES
SPX closed the day with a neutral-bullish doji, and the 3D frame printed a solid bullish continuation. The index continues to recover from the recent sharp pullback, slowly turning the smaller frames bullish. Nasdaq is very similar.
The Dow Jones made a new ATH, and if it had closed a bit higher, I would consider it a Three White Soldiers pattern. Still, it’s close, and the index looks solidly bullish.
Russell formed a bearish Harami with weak support. The index is neutral, pending confirmation.
Short term: SPX — bullish
Mid term: SPX — neutral
Long term (15D and larger): SPX — bullish
Elliott Waves
Short Term
I view the current horizontal wave as consolidation—the recent decline appears corrective. The other indices show a similar setup, with their pullbacks also corrective, which tilts the odds toward a continued move higher.
Mid Term
On the grand scale, the purple 4 remains in play. From a technical-indicator standpoint, there’s still no clear preference between the purple and green counts.
SUMMARY
The index is moderately bullish. While a prolonged horizontal or slight downward correction may persist, it is likely to remain limited. The rally is more likely to resume soon.
The Dow Jones made a new ATH, which could be an important harbinger for SPX and NQ, which generally follow a similar wave structure. We remember that making a new ATH would significantly reduce the probability of the purple count on the Short Term chart.
Short term: SPX — bullish
Mid term: SPX — neutral
Long term (15D and larger): SPX — bullish
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Happy Trading!
