$SPX Stalls: Short-Term Pullback, Bigger Rally Still Alive
$S&P 500(.SPX)$ had a clear opportunity to extend the recent rally, but the breakout attempt failed to gain enough momentum. That makes the bearish B-wave rally the higher-probability short-term scenario for now.
Under this interpretation, the next move could be a C-wave decline toward the August 6 swing low, completing the bullish ABC corrective structure. If that support holds and the correction finishes as expected, the broader uptrend would remain intact, setting the stage for another leg higher.
From there, the next major objective would be 7,900, which could complete the larger W5 advance and mark the next significant upside target.
There is still a bullish alternative. If $SPX manages to chop sideways into the CPI release and then breaks higher with momentum, the corrective scenario could be invalidated quickly and the index could resume its advance without revisiting the August 6 low.
For now, the setup is short-term bearish but structurally bullish. As long as $SPX remains above 7,550, the broader bullish thesis remains intact. The key is whether the index can defend that level while completing the current correction.
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