Welcome to the captivating world of SP500 technical analysis, where we unlock the secrets of the market using Elliott Wave Theory. Join us on this journey as we delve into the latest insights and trends shaping today’s trading session.

SP500 Technical Analysis

Market Overview

The S&P 500 Futures (ES1!) daily chart is sitting at fresh all-time highs around 6,910, extending an already dominant uptrend that’s been in place since the March 2025 low near 5,200. This latest leg higher broke cleanly above the prior resistance zone around 6,750–6,800, confirming strong momentum and follow-through from buyers. Over the next couple of weeks, I’d be watching whether the market can hold above that breakout zone — ideally 6,780–6,800 — which would signal that prior resistance has turned into support. If bulls maintain control, the next upside targets come in near 7,000–7,050, where psychological resistance and potential profit-taking could appear. Momentum indicators and breadth should be monitored closely — if price keeps grinding higher but participation thins out, that could foreshadow an exhaustion move.

Bearish Breakdown Levels

For the bears, the tone only meaningfully shifts if ES breaks back below key support levels that define the current breakout structure. The first warning sign would be a daily close below 6,780, showing failed follow-through on the breakout. However, the more decisive inflection level sits near 6,650–6,700 — that’s where buyers have consistently defended prior swing highs. A confirmed breakdown there would represent a failed breakout and likely shift momentum toward correction mode. In that case, downside targets would open toward 6,500–6,400, where the next major volume and structural support zones align. Until then, momentum remains firmly bullish, but risk-reward at these heights favors patience and tactical discipline over chasing.

NASDAQ Technical Analysis

The Nasdaq 100 Futures (NQ1!) daily chart is also pressing into new highs near 25,980–26,000, extending an already relentless rally that’s been in motion since the March 2025 low near 18,000. The market has cleanly broken through its previous ceiling around 25,500, turning that zone into near-term support. Over the next couple of weeks, I’d be watching how price behaves around 25,800–25,900 — if buyers continue to defend that range, momentum could easily carry the index toward 26,300–26,500, the next measured extension based on prior swing symmetry. However, at this altitude, risk of short-term exhaustion grows. If breadth weakens or daily candles start showing long upper wicks, that would suggest buyers are getting stretched and profit-taking could emerge.

For bears, the structure hasn’t flipped yet — the trend remains strongly bullish — but there are a few critical levels to watch that could signal a change in tone. A close below 25,750 would be the first yellow flag, showing failed follow-through above the breakout. The real momentum shift, however, would come with a sustained drop below 25,300–25,400, a prior consolidation shelf and high-volume node from early September. Losing that area would trap late buyers and likely trigger a momentum unwind toward 24,800–24,500, a more meaningful support cluster. Until that happens, the bulls remain firmly in control, but the higher we climb above 26,000, the more stretched and vulnerable the market becomes to a mean-reversion pullback.

Stay Informed with Elliott Wave Theory

As we continue our journey through SP500 and NASDAQ technical analysis, guided by the powerful Elliott Wave Theory, our goal is to keep you well-informed about the market’s ever-evolving trends and the abundant opportunities it offers. Think of it as having a trusty compass in the vast sea of trading, helping you navigate through the dynamic landscape of today’s financial markets.

So, stay tuned for more updates and insights, and may your trading journey be as thrilling as the markets themselves.