$SPX $S&P #Ending Diagonal #topping
S&P cash index has the cleanest wave count at this point:
S&P 500, Daily chart
That wave count considers the rally off the April’25 low as some subwave A of wave 5 up that is supposed to re-test the Feb’25 top (6,147).
zooming-in:
SPX, Daily chart
What that chart tells you is that you may consider going short at 6,085 and higher (in the Red Box).
And S&P will start looking attractive for longs on a drop down to 5,923.
Note that this grinding move up looks like an ending diagonal, a pattern composed of three a-b-c swings up and two swings down within boundaries created by two contracting trend lines. When that pattern gets completed we normally get a strong and deep drop down to the low made by the first corrective pullback (see the micro target 2 = 5,842).
Interestingly, there is a Gann 6×270 degree projection off the April’25 low pointing to a potential top in SPX cash index at 6,167.
for ES-mini the Gann’s Levels indicator points to 6 × 270° projection = 6,164 → Next projected top.
This afternoon decline can be counted as a micro wave iv down:
SPX 15 min chart
Ideally I would like bears to test the lower boundary of the contracting price channel and then I would expect bulls to produce another strong blow-off to move up overshooting the upper trend line in the final micro wave v up.
A blow off top move would complete that bearish looking ascending triangle and set the stage for a strong drop down to 5,842.