FX.co ★ Elliott wave analysis of S&P 500 for July 8, 2021

The S&P 500 continues to push higher towards our ideal target near 4,444 where we think a major top will be seen for a larger corrective decline towards at least 3,000 and possibly even closer to the March 2020 low near 2,181. However, for now we should stay cautious focused towards the upside for the final spike closer to our 4,444 target.

Short-term it will take a break below minor support at 4,181 to indicate that the S&P 500 has peaked and the larger corrective decline is in motion.

Trading recommendation:

Stay cautious long the S&P 500 index, but keep your stop just below 4,181 or sell near 4,444 for a larger corrective decline.