S&P 500 Update: Extending Bullish Rally Toward 7500–7700 Zone

The S&P 500 keeps extending nicely higher, as mentioned and highlighted back in April. Price is now trading at fresh highs following the perfect rebound from the ending diagonal formation that developed at the end of March. CHECK IT HERE

Since then, the market has continued to print higher highs and higher swing lows without significant overlaps in the middle of the move, which clearly points to a strong impulsive structure. At this stage, it appears that we are dealing with an extended fifth wave, possibly still within wave three, which could continue pushing higher toward the 7500 area, where the upper line of the impulsive channel comes into focus.

Around that region, traders should be aware of a possible slowdown and the potential start of a higher-degree wave four correction. A confirmed break below the supporting trendline would be the first signal that a deeper retracement into wave four may be underway, potentially opening room for a pullback toward the 7200 area, where new dip-buying opportunities could emerge.

From a higher time frame perspective, the broader bullish structure still leaves room for a continuation toward the 7600–7700 region before a more significant correction develops.

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