The S&P 500 ETF (SPY) has completed its correction to the cycle that began from the April 7, 2025 low and has turned higher with an attempt to reach a new all‑time high. From the April 2025 low, the ETF advanced in wave ((1)), which ended at the January 28, 2026 high of $697.87. It then pulled back in wave ((2)) to correct the entire cycle from April 2025, and this decline concluded at $629.23. With that level in place, SPY has resumed higher in wave ((3)), although a decisive break above the wave ((1)) peak at $697.87 remains necessary to fully dismiss the risk of a double correction.
Rally from wave ((2)) low is unfolding as an impulse Elliott Wave structure. Wave ((i)) advanced to $658.52, followed by a pullback in wave ((ii)) that ended at $644.16. The structure now suggests that SPY should continue higher to complete wave ((iii)). A subsequent pullback in wave ((iv)) is expected to correct the cycle from the April 2 low before the ETF turns higher again to finish the sequence.
In the near term, the bullish outlook remains valid as long as the pivot at $629.23 stays intact. Under this condition, any dips should continue to attract buyers within a three‑ or seven‑swing sequence, supporting the prospect of further upside as the larger trend progresses.
S&P 500 ETF (SPY) 30-minute Elliott Wave chart
SPY Elliott Wave [Video]
