The S&P 500 has found buyers inside its Equal Legs support zone between 7362.45 and 7557.95, completing a three-wave intraday pullback that analysts at ElliottWave-Forecast mark as finished at 7616.9. The firm expects the index to resume trading higher as long as that level holds.
SPX found buyers right at the Equal Legs zone, producing a reaction from that area, and analysts at ElliottWave-Forecast consider the pullback, labeled wave (ii), complete at 7616.9. As a result, long positions taken from the Equal Legs zone are now risk-free after their stops were moved to breakeven.
Equal Legs zone marks the pullback's end
The setup traces back to an earlier three-wave rally, after which SPX formed an intraday three-wave pullback that fit a typical Elliott Wave bullish sequence. Analysts measured the target zone using the Fibonacci Extension tool, comparing the decline's wave a to wave b, which placed the ideal support area at 7362.45–7557.95. SPX declined into that zone as expected, confirming the scenario the analysts had proposed.
7616.9 becomes the key level to watch
With the pullback now marked complete, analysts expect SPX to continue trading higher, with the potential to extend toward new highs in at least a three-wave bounce. The key level at this stage is 7616.9: as long as the index holds above that low, further upside should ideally be seen under the firm's primary view.
The call does not rest on wave counts alone. Analysts said the view also draws on higher-time-frame cycle analysis showing an incomplete market structure, together with correlation analysis and broader market context.
Source: ActionForex (ElliottWave-Forecast)
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