S&P 500 Elliott Wave Weekly Update - Friday, Aug 14

Technical Analyst & Trader • Aug 14, 2026 at 10:20 PM EDT

Elliott Wave analysis indicates the S&P 500 is nearing a blow-off top near 8,000 before a massive Cycle degree correction.

In this week's update, I am presenting my long-term Elliott Wave count for the S&P 500, which has remained consistent since December 2022.

I explained that despite ongoing market extensions, I believe the market is approaching new all-time highs that will eventually lead to a significant top and specifically a Cycle fourth wave correction that could take the S&P down to 666.78.

I discussed current market conditions including extreme overbought levels, the concentration of trading activity in AI and semiconductor stocks, and the potential for a blow-off top around the 8,000 level where significant option positions are concentrated.

I emphasized that while I don't make trading recommendations, the market's direction will become "undeniable" when the correction begins, and highlighted concerns about US debt levels, interest rates, and geopolitical tensions as potential catalysts for the upcoming downturn.

Video Length: 00:57:22

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