S&P 500 Pulls Back From ATH — Is 7,677 the Next Target?
The S&P 500 has started to decline over the past two days after reaching new All-Time Highs (ATH) and is now trading near an important Resistance Zone.
After the recent rally, short-term momentum is beginning to show signs of weakness.
From an Elliott Wave perspective, the S&P 500 appears to be developing a Triple Three Correction (W-X-Y-X-Z), with Wave X seemingly completed.
A Negative Regular Divergence (RD-) is also visible between two Consecutive Peaks, providing another warning that bullish momentum may be weakening.
I expect the index to continue lower toward 7,724.
The key level is 7,720.
If the S&P 500 confirms a breakdown below this level, the correction could extend toward the next major trading level around 7,677.
Trade Setup
First TP: 7,724
Second TP: 7,683
Stop Loss: 7,820
Key Levels: 7,780 | 7,720 | 7,677
A sharp decline in U.S. equities could also create additional pressure on Bitcoin and the broader crypto market, particularly if a broader Risk-Off move develops.
Geopolitical tensions in the Middle East also remain an important source of uncertainty, meaning headlines could quickly increase volatility across equity markets.
Which level will the S&P 500 reach first?
🔴 7,683
🟢 7,820
#SP500
The S&P 500 has started to decline over the past two days after reaching new All-Time Highs (ATH) and is now trading near an important Resistance Zone.
After the recent rally, short-term momentum is beginning to show signs of weakness.
From an Elliott Wave perspective, the S&P 500 appears to be developing a Triple Three Correction (W-X-Y-X-Z), with Wave X seemingly completed.
A Negative Regular Divergence (RD-) is also visible between two Consecutive Peaks, providing another warning that bullish momentum may be weakening.
I expect the index to continue lower toward 7,724.
The key level is 7,720.
If the S&P 500 confirms a breakdown below this level, the correction could extend toward the next major trading level around 7,677.
Trade Setup
First TP: 7,724
Second TP: 7,683
Stop Loss: 7,820
Key Levels: 7,780 | 7,720 | 7,677
A sharp decline in U.S. equities could also create additional pressure on Bitcoin and the broader crypto market, particularly if a broader Risk-Off move develops.
Geopolitical tensions in the Middle East also remain an important source of uncertainty, meaning headlines could quickly increase volatility across equity markets.
Which level will the S&P 500 reach first?
🔴 7,683
🟢 7,820
#SP500