FX.co ★ Elliott wave analysis of S&P 500 for January 25, 2022

The S&P 500 index pierced support at 4,272, but closed well above this support at 4,417 indicating that a possible corrective low could be in place and the final impulsive rally is ready to take hold towards the 5,000 - 5,100 area.

We do see a possible positive divergence and a clear hidden divergence also supporting the final impulsive rally higher. That said, we also have to stress that we already could have see the top with the test of 4,820 and a larger corrective phase is in motion. For now we will have to be patient and let the Market show us its real intentions.