S&P 500 Elliott Wave Weekly Update - Sunday, Jan. 18

By Michael Filighera of Logical Signals

Technical Analyst & Trader • Jan 18, 2026 at 4:00 PM EST

In this video, I provide an analysis of the S&P 500. I focus on the completion of cycle wave 3, which has been in progress for 77 years since 1949.

shallow focus photograph of black and gray compass

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In this video, I provide an Elliott Wave analysis of the S&P 500. I focus on the completion of cycle wave 3, which has been in progress for 77 years since 1949. I note that once cycle wave 3 is finished, I would expect a cycle wave 4 correction, which could be triggered by various economic threats. I emphasize the importance of understanding Elliott Wave principles, particularly that a fourth wave in progress will find its endpoint within the fourth wave of a lesser degree.

I also acknowledge that other analysts may view the current market top as either a Supercycle or Grand Supercycle wave 3, but all perspectives converge on the same critical area for the correction to begin. I discuss the upcoming market correction, predicting it could be the largest since 2008-2009, with the market likely to return to the 2009 low.

I explain that the correction would unfold in a cycle wave 4, consisting of an ABC of primary degree, with the C wave expected to surpass the A wave. I note that algorithms could potentially accelerate the decline, and I emphasize the importance of monitoring the market's movement closely. I also mention the possibility of the market returning to a range between 667 and 1,552, with a potential endpoint near 667.

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