Is the S&P 500 en Path to New All-time Highs?…

There Are Two Methods to Get to $6280-6360

We, due to this fact, proceed to assign the index’s advance because the August 2024 low an Ending Diagonal (ED) construction. As a reminder, an ED’s waves (i–ii–iii–iv–v) comprise three waves: three–three–three–three–three = abc–abc–abc–abc–abc. Apart from, W-iii sometimes targets the 123.60% extension of W-i, measured from W-ii. The W-iv then tends to right again to the 61.80% extension, after which the final W-v targets the 161.80% extension. Since, up to now, the index is operating a bit forward, e.g., it held the 76.40% extension, we now anticipate it’s extra more likely to attain the 176.40% extension at $6363. See Determine 2 above. However, as at all times, we’ll monitor the advance to slim down the purple W-v goal zone.

For now, now we have had a 192p rally from the January 2^nd low, and so long as that low holds, we should assign the rally to the (subdividing) purple W-v. The warning ranges for the Bulls are marked on the each day chart, with a primary warning on a break under final Friday’s shut, and many others.

The choice (blue Alt: a, Alt: b, Alt: c) is that the purple W-iv will change into protracted, with the present rally most certainly stalling out at round $6050+/-25 as soon as once more, adopted by one other leg decrease to the purple W-iv goal zone. A break under the orange warning stage of $5868 will strongly counsel this.

Nevertheless, we slice and cube it; over the intermediate time period, the index is most certainly not but executed to the upside, and even after a doable final leg decrease higher into the perfect $5735-5810 goal zone, we are able to nonetheless count on a rally to new all-time highs. However please notice that after the $6200+ area has been reached, a a lot bigger correction, if not an outright multi-year Bear market, can begin.