Sp500 Eyes Pullback After Five-Wave Rally as Support Between 6828 and 6883SPX Holds Focus

The sp500 appears set for a pullback after what an update called a completed five-wave rally off last week’s low, and the writer identified a support box between the. 500 and. 764 retracement of wave 1 in the 6828-6883SPX region as the key zone to watch.

Testing micro support near 6950SPX

The update noted micro support in the 6945-50SPX region and said the market was testing 6950SPX as the note was written. It added that a follow-through below 6945SPX should provide an initial indication that a corrective wave 2 is in progress.

Sp500: Where the pullback could find a low

The author set a wider support box spanning the. 500-. 764 retracement of the prior rally, explicitly placing that box in the 6828-6883SPX region. If the corrective pullback reaches that zone, the update described it as a "reasonable low-risk opportunity for a long trade, " noting the setup could precede a rally that exceeds 250+ points higher once the correction finishes.

Larger downside scenario and triggers to watch

The note also outlined a larger-degree downside possibility: if an impulsive drop breaks last week’s low and posts follow-through below 6720SPX, it opens the door for a more extended pullback to the 5700-6100SPX region. For now, the writer said, "the bulls still have the ball, " but emphasized that key breakpoints would change that outlook.

Once wave 2 completes, the update said the author would set up the Fibonacci Pinball extensions to establish pivot, resistance and target levels for waves 3, 4 and 5. The next confirmed market signal identified in the note is a follow-through below 6945SPX to confirm that wave 2 has begun; a separate follow-through below 6720SPX would increase the probability of the larger pullback to 5700-6100SPX.