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S&P 500 (SPX) approaches completion of Elliott Wave diagonal pattern [Video]

The S&P 500 (SPX) continues to advance as it works toward completing a diagonal Elliott Wave structure that began at the November 21, 2025 low. From that level, wave ((i)) pushed higher and ended at 6986.33. The market then entered wave ((ii)), which unfolded as a clear zigzag.

🔗 Source

💡 DMK Insight

The S&P 500’s upward movement is more than just a number—it’s a potential wave pattern traders need to watch closely. Currently, the SPX is progressing toward completing a diagonal Elliott Wave structure, which could signal a significant shift in market sentiment. The wave ((i)) reached a high of 6986.33, and the subsequent wave ((ii)) has formed a zigzag pattern, indicating a corrective phase. This setup suggests that traders should be on alert for a possible breakout or reversal as the market approaches key resistance levels. If the SPX can maintain momentum, it could lead to further bullish sentiment, but a failure to break past recent highs might trigger profit-taking or a deeper correction. Keep an eye on the daily charts for any signs of exhaustion or reversal patterns, especially if the SPX approaches the 7000 mark again. Also worth noting is the broader market context—if the SPX continues to rise, it could pull related indices and sectors along with it, particularly tech stocks that often lead the charge. Watch for volume spikes as confirmation of any breakout or reversal.

📮 Takeaway

Monitor the S&P 500 closely as it approaches the 7000 level; a breakout could signal further bullish momentum, while failure may lead to corrections.

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