A technical blog reviewed the SPX Index through an Elliott Wave lens after a rally was followed by an intraday three-wave pullback. The decline from the peak was presented as a corrective sequence, with attention on an Equal Legs zone as a prospective buying area, while the one-hour chart dated 09.30.2026 described the structure as still incomplete and therefore open to further downside before the correction could be considered finished.
On 10.01.2026, the analysis said the index continued lower and framed a prospective buyers’ zone by applying a Fibonacci Extension, comparing the red wave a to the red wave b; the ideal support area was set at 7362.45–7557.95. By 10.02.2026, the update reported a reaction after SPX found buyers at the Equal Legs zone, with pullback (ii) marked as completed at 7616.9. The same level, 7616.9, was identified as the key reference point, with the view contingent on SPX holding above that low while price action was expected to turn higher.
Technical Set-Up and Trading Implications
We recently observed the SPX Index complete a healthy three-wave corrective pullback, finding solid buyers near the 7616.9 level. Derivative traders should now look to position themselves on the long side, using this recent low as a strict risk-management level. As long as the index remains above this key support, the path of least resistance points toward new highs in the coming weeks.
Seasonality and Macro Tailwinds Bolster the Bullish View
This bullish technical setup aligns perfectly with historical fourth-quarter seasonality, where the index has traditionally shown its strongest performance of the year. Historically, the S&P 500 has posted positive returns in the final three months of the year nearly 80% of the time, averaging a gain of over 4%. October, in particular, frequently serves as a turnaround month that launches powerful year-end rallies.
Supporting this upward momentum is the broader macroeconomic environment, characterized by ongoing central bank rate-cutting cycles that historically boost equity valuations. Recent economic data shows resilient corporate earnings growth, with S&P 500 earnings projected to sustain solid double-digit momentum. For options and futures traders, this combination of technical support and strong fundamentals suggests utilizing strategies like buying calls or entering bull spreads on minor intraday dips.
