1:17PM ET S&P Elliott Wave Update (ARTICLE)

S&P 500 Holds the Line at 6900 and Confirms the Bounce

As I stated earlier, the S&P 500 was approaching a critical inflection zone near 6900, a level that represented both structural support and a psychological threshold on the broader trend. That level held precisely, and price responded exactly as expected—buyers stepped in, momentum shifted, and the index bounced back into positive territory. This was not a random reaction; it was a technically sound response at a level that mattered.

The 6900 area functioned as a confluence zone: prior breakout support, short-term Fibonacci retracement alignment, and rising trend structure all intersected there. When markets defend these zones decisively, it typically signals that the larger trend remains intact. That is exactly what we saw. Selling pressure exhausted, downside follow-through failed, and price reversed higher.

From a short-term tactical perspective, this bounce opens the door for a continuation move toward 7300. That level is now my near-term upside target. It represents the next major resistance zone, where prior momentum stalled and where profit-taking is likely to re-emerge. Between 6900 and 7300, there is relatively clean air—meaning fewer structural obstacles for price to navigate through.

Momentum indicators are already improving following the bounce. Short-term oscillators have turned up from reset levels, while broader trend measures remain firmly bullish. Importantly, this was not a panic-driven selloff; it was a controlled pullback within an ongoing advance. Those are the types of corrections that often resolve higher rather than marking major tops.

My current positioning reflects this outlook. I am holding 600 shares of UPRO, maintaining a leveraged long exposure to the S&P 500. While leverage always requires discipline, the risk-to-reward profile at the 6900 hold was compelling. The invalidation level was clear, the upside target well-defined, and the broader trend supportive. When those elements align, the trade is worth taking.

That said, discipline remains key as price approaches 7300. Resistance zones are where markets test conviction, not where traders get complacent. Should momentum accelerate cleanly through that level, it would suggest even higher targets are possible. Conversely, rejection near 7300 would likely lead to consolidation rather than immediate downside, given the strength of the underlying trend.

In summary, the S&P 500 did exactly what the chart suggested it would do: hold 6900, bounce, and stabilize. As long as that level remains intact on a closing basis, the path of least resistance remains higher, with 7300 as the short-term objective. Until proven otherwise, this remains a market that rewards patience, structure, and respect for key technical levels—not fear.