S&P500: Target Zone Deactivated

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The S&P 500 extended its bullish trend yesterday, moving beyond our now-deactivated (formerly magenta) Target Zone. Existing positions remain intact, as the stop set 1% above the upper boundary has not been triggered. In our updated primary scenario, we anticipate continued upward movement within magenta wave (B), potentially reaching the resistance at 6675 points. Once this peak is established, we expect a corrective decline to begin in the form of wave (C), which should guide the index into the green Long Target Zone between 4988 and 4763 points. There, the larger green wave [4] is expected to complete. A sustained breakout above the 6675-point level would shift the outlook in favor of the alternative scenario. In that case, green wave alt.[4] would be considered complete—a trajectory we currently assign a probability of 40%.

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