S&P 500 Approaching Potential Wave 5 Completion

The S&P 500 continues to deliver an impressive upside move, trading at fresh highs after the textbook rebound from the ending diagonal pattern that completed at the end of March.

Since that low, the market has established a clear sequence of higher highs and higher swing lows, with no significant overlaps in the middle portion of the advance. This behavior is characteristic of an impulsive structure and supports the view that the broader uptrend remains intact.

From an Elliott Wave perspective, the index now appears to be progressing through the final Wave 5 of the impulse sequence. Price has reached the 7600–7700 target zone, an area where traders should start paying attention to signs of slowing momentum and potential trend exhaustion.

Adding to the cautionary outlook, the divergence line suggests that bullish momentum is beginning to fade, indicating that buyers may be losing strength as the market pushes into new highs.

For now, the trend remains bullish, but a daily and weekly close below 7495 would be an important warning signal that the top may already be in place and that a larger corrective phase could be underway.