Since April 07, 2025, Delta Air Lines (NYSE: DAL) has traced a textbook five-wave impulsive advance under classical Elliott Wave Theory. The structure satisfies all core impulsive criteria and suggests that the advance from the April cycle low represents a mature motive phase. When a transport leader completes a structurally clean impulse, the signal often extends beyond the stock itself, carrying implications for broader global indices.
The current configuration does not imply immediate collapse. Rather, it suggests that upside may be structurally limited unless an unexpected nesting extension develops. Here is the Daily chart showing the five waves advance since 04.07.2025.
DAL Daily Elliott Wave Chart Update.
Wave 1 – Initial Impulse
Technical characteristics:
Strong directional breakout from prior corrective structure.
Clear five-wave subdivision on lower timeframes.
Narratively, Wave 1 established the shift in market control. Sellers exhausted at the April low, and buyers regained structural dominance.
Wave 2 – Corrective Retracement
Wave 2 retraced a portion of Wave 1 while respecting core Elliott rules.
Guidelines satisfied:
Retracement within the 50%–61.8% zone of Wave 1.
No breach of Wave 1 origin.
Sharp corrective profile, consistent with later alternation.
Structural possibilities typical of Wave 2:
Zigzag (5-3-5).
Double zigzag.
Expanded flat (less frequent at this position).
Confirmation factors:
Decreasing volume during the pullback.
Momentum reset without structural breakdown.
This correction was necessary to build energy for the third wave expansion.
Wave 3 – Extended Impulse
Wave 3 represents the dominant expansion phase and typically carries the strongest momentum characteristics.
Observed traits:
Clear break above Wave 1 high.
Sustained momentum expansion (RSI frequently reaching 70–80).
Volume expansion confirming participation.
Clean five-wave internal subdivision.
Fibonacci projections:
1.618 × Wave 1 (minimum common extension).
2.618 × Wave 1 (extended scenario).
Wave 3 displayed textbook impulsive characteristics: accelerating price velocity, and structural clarity. Importantly, Wave 3 is not the shortest among Waves 1, 3, and 5, preserving rule integrity.
Wave 4 – Corrective Phase
Following the extended third wave, DAL entered Wave 4.
Typical characteristics:
Retracement of approximately 23.6%–38.2% of Wave 3.
Complex, sideways behavior.
Alternation relative to Wave 2.
The alternation principle is critical: because Wave 2 was relatively sharp, Wave 4 tends toward a more time-consuming, sideways structure (flat, triangle, or combination).
Key rule:
Wave 4 must not overlap Wave 1 price territory in a standard impulse.
Additional features include:
Volatility compression
Decreasing momentum
Emerging divergence signals
As long as price holds above the Wave (4) low, the impulsive count remains intact.
Wave 5 – Final Impulse
Wave 5 completes the five-wave motive structure.
Common characteristics:
Momentum often weaker than in Wave 3 (bearish divergence possible).
Volume lighter relative to Wave 3.
Price may reach marginal new highs.
Typical Fibonacci relationships:
Wave 5 = Wave 1
Wave 5 = 0.618 × Wave 1
0.618 extension of Waves 1–3 measured from Wave 4 low.
Wave 5 frequently produces the final push before a higher-degree ABC correction begins. Traders should monitor RSI divergence and exhaustion signals carefully.
Broader Implications for World Indices:
Transportation stocks historically serve as leading cyclical indicators. Under Dow Theory principles, confirmation or divergence within transports often precedes broader equity shifts. Many global indices marked significant lows on the same date as DAL’s April pivot, The synchronized cycle low increases the structural relevance of this impulse, If DAL is completing a mature five-wave advance, similar cycle maturity may exist across global benchmarks.
A completed five-wave impulse typically transitions into a three-wave corrective phase of larger degree. This does not imply systemic collapse; rather, it signals increasing probability of a corrective rotation or pullback. The current structure suggests that upside may be limited unless an unexpected nest structure develops since 04.07.2025. If price remains above the Wave (4) low, further extension remains possible — not only in DAL but potentially across world indices as well. However, once the five-wave sequence fully matures, the risk-reward profile shifts from aggressive upside participation toward preparation for corrective volatility. Here is the Daily chart showing Delta and $SPX together since 04.07.2025.
DAX Overlay Chart With SPX
Conclusion:
Delta Air Lines has formed a technically coherent five-wave impulse since April 07, 2025, The structural perfection of this impulse is not merely an isolated technical event. When a major transport component completes a mature motive structure synchronized with global equity cycles, it often precedes broader market inflection. The implication is not immediate bearish reversal — but the warning is present. If the Wave (4) low remains intact, extension higher remains viable.
If the five-wave sequence completes without nesting continuation, markets may soon transition into a corrective phase that offers a pullback-to-buy opportunity. In structural terms, Delta is signaling that the current bullish phase is advanced — and markets rarely ignore completed impulses for long, the warning is there and soon another great buying opportunity for the World Indices, maybe the biggest, we have ever seen.