Hello everyone! In today’s article, we’ll examine the recent performance of S&P 500 ETF ($SPY) through the lens of Elliott Wave Theory. We’ll review how the rally from the April 21, 2025 low unfolded as a 5-wave impulse followed by a 7-swing correction (WXY) and discuss our forecast for the next move. Let’s dive into the structure and expectations for this ETF.
5 Wave Impulse + 7 Swing WXY correction
$SPY 1H Elliott Wave Chart 6.22.2025:
In the 1-hour Elliott Wave count from June 22, 2025, we saw that $SPY completed a 5-wave impulsive cycle at 5 of (3). As expected, this initial wave prompted a pullback. We anticipated this pullback to unfold in 7 swings, likely finding buyers in the equal legs area between $592.48 and $585.08.
This setup aligns with a typical Elliott Wave correction pattern (WXY), in which the market pauses briefly before resuming its primary trend.
$SPY 1H Elliott Wave Chart 6.23.2025:
The next update, from June 23, 2025, shows that the ETF bounced as predicted. Currently, it is trading higher in wave 1 of (5) looking for continuation higher in 5 waves towards 627 – 647 area before another pullback can happen.
Conclusion
In conclusion, our Elliott Wave analysis of S&P 500 ETF ($SPY) suggests that it remains supported against April 2025 lows. As a result, traders should buy the dips and monitor the $627–$647 zone as the next potential target. In the meantime, keep an eye out for any corrective pullbacks that may offer entry opportunities. By applying Elliott Wave Theory, traders can better anticipate the structure of upcoming moves and enhance risk management in volatile markets.