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The S&P 500 has ripped from $5,000 to nearly $6,000 in under two months — the fastest rally on record. Price action has been relentless, and while the trend is still intact, signals are flashing that a short-term pullback could be brewing.
🔍 Why a Cooldown Makes Sense
- 4H RSI is deep into overbought territory (75.20), with the 1D RSI hovering just under 70 — stretched.
- Price is pressing the Value Area High ($5,930) — a known stalling point.
- Key macro news on Thursday (unemployment claims, flash PMIs) could serve as a catalyst or headwind.
In short, we’re perched at an inflection point…not a reversal call, but a pause wouldn’t surprise.
S&P 500 (SPX index) is tradeable on Alchemy Markets as the US500 ticker.
Pullback Zone to Watch: $5,700
The most logical retrace zone sits between:
- The market gap
- 1D EMA 20 and EMA 50
- Point of Control (POC) near $5,628
If we fade, these stacked levels should attract buyers, offering a clean long setup if the level holds.
The uptrend is only in danger if we lose $5,328 — the value area low, which sits just below the neckline of the double bottom. That level’s your invalidation line for the bigger move. Until then, dips are for buying, but chasing strength here is a late entry play.
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SP500 Elliott Wave: Climbing the 3rd Wave
DISCLAIMER: For educational purposes only. Trading comes with substantial risk, leading to possible loss of your capital. Traders are advised to do their own due diligence before investing.
