As of 8:20 PM PT Sunday evening, futures on the S&P 500 Index are down modestly by roughly 12 points, but the broader technical picture remains decisively bullish after Friday’s powerful rebound erased nearly all concerns created during Thursday’s pullback.

The recent price action continues reinforcing the idea that the market remains inside an aggressive Elliott Wave expansion cycle, with buyers consistently stepping in whenever weakness appears. Thursday’s decline unfolded in what resembled a mild zigzag correction — sharp enough to shake out late momentum traders, but ultimately too shallow to damage the larger bullish structure.

Instead of accelerating lower, the SPX came roaring back Friday.

The index reclaimed 7,330 almost immediately and powered back above 7,350, which had already been identified as the first major fifth-wave target. More importantly, buyers nearly pushed the index above the psychologically important 7,400 level into the weekly close, highlighting just how persistent upside momentum remains underneath the surface.

That type of recovery is rarely random.

In strong trending markets, failed breakdowns often become fuel for the next leg higher because trapped shorts and underpositioned bulls are forced back into the market simultaneously. Friday’s reversal had many of those characteristics, especially considering how quickly sellers lost control after Thursday’s weakness.

The technical structure now suggests that only two major Elliott Wave targets remain in the current sequence.

The first target is the .618 extension of Wave 1 added to Wave 3, which projects toward the 7,500 region.

7{,}500

If momentum continues accelerating and the SPX decisively clears 7,500, the larger 1.618 extension target in Wave 3 expands dramatically toward 8,320.

8{,}320

At first glance, an 8,320 target may appear extreme, especially after the massive rally already seen since the prior correction lows. However, third waves historically become the most explosive portion of Elliott Wave structures because that is when institutional momentum broadens across multiple sectors simultaneously.

That may already be happening now.

Technology continues leading the broader market higher, but participation has also widened into industrials, financials, select consumer names, and infrastructure-related sectors. Breadth expansion is important because sustainable bull trends rarely survive on narrow leadership alone.

Another bullish factor is how resilient dips continue to be.

Every recent retracement has been shallow relative to the strength of the advance preceding it. Even Thursday’s zigzag decline failed to produce meaningful technical damage before buyers overwhelmed sellers again Friday morning. Markets that refuse to stay down often signal stronger institutional demand than most traders realize in real time.

Psychology also remains favorable for continued upside.

Despite the index sitting near record territory, skepticism remains widespread among traders expecting recession risks, valuation compression, or macroeconomic shocks to suddenly reverse the rally. Ironically, those fears can become fuel for additional upside because underinvested participants eventually feel pressure to chase performance as markets continue climbing.

That environment often produces the strongest phase of Wave 3 advances.

Momentum indicators also continue supporting the bullish structure. Breakouts are sustaining rather than failing. Support levels are holding quickly after tests. Pullbacks are becoming shorter in duration. These are all classic signs of a market where buyers remain in firm control of trend direction.

The 7,500 zone now becomes the next critical battlefield.

If bulls can break and sustain above that level, traders may begin shifting focus toward the much larger 8,320 extension target. Once markets enter accelerated third-wave conditions, price often advances faster than conventional valuation models or economic narratives can justify.

That is why Elliott Wave traders focus heavily on crowd psychology and trend behavior rather than relying exclusively on fundamentals.

Of course, volatility should still be expected along the way. Even powerful bull markets experience sharp pullbacks, overnight headline shocks, and temporary momentum resets. But unless the SPX begins forming sustained lower highs combined with heavier distribution patterns, the broader structure still strongly favors continuation higher rather than a major trend reversal.

The mild futures weakness Sunday evening does little to alter that picture for now.

Instead, the bigger takeaway remains the strength of Friday’s reversal and the market’s continued ability to absorb selling pressure rapidly. As long as buyers continue defending key breakout levels and momentum leadership remains intact, the path of least resistance appears tilted toward higher prices.

For the moment, the SPX appears locked on a trajectory toward 7,500, with the possibility of a much larger Wave 3 acceleration toward 8,320 still alive if current momentum conditions continue strengthening in the weeks ahead.