The S&P 500 E-Mini Futures (ES) has reached new all-time highs, confirming a bullish trend stemming from the November 21, 2025 low. This rally is structured as a five-wave diagonal, aligning with Elliott Wave principles typical in strong markets. Wave ((i)) ended at 6975.25, followed by a zigzag correction in wave ((ii)), with wave (a) ending at 6817.5 and wave (b) at 6882.50. Wave (c) completed wave ((ii)) at 6771.75, serving as a key support level.
Following wave ((ii)), the index climbed in wave ((iii)), with wave (i) reaching 6872 and wave (ii) pulling back to 6857.5. Wave (iii) extended to 6990, experiencing consolidation in wave (iv) at 6974, and wave (v) pushing to 6994, completing wave ((iii)). A corrective wave ((iv)) ended at 6936, indicating subsequent potential for upward movement.
Potential Upside Targets
As long as the 6771.75 pivot holds, pullbacks should find support within a 3, 7, or 11 swing sequence. Potential upside targets, using the external retracement levels from wave ((iv)), lie between 7007 and 7029. This suggests further gains if corrective patterns remain controlled.
We see the S&P 500 E-Mini futures continuing their bullish path into the new year, having just reached new all-time highs. This upward momentum is supported by a technical structure that began with the November 21 low. Recent economic data further strengthens this view, making dips attractive entry points for long positions.
Looking back at the data from this quarter, the November 2025 Consumer Price Index report showed core inflation easing to 2.5%, calming fears of aggressive rate hikes. With the Federal Reserve signaling a more data-dependent stance for 2026, market sentiment has shifted favorably. This macroeconomic backdrop aligns with the ongoing ‘Santa Claus Rally’ we are currently witnessing.
Trading Strategies and Support Levels
Given this bullish outlook, traders could consider buying call options or selling out-of-the-money put credit spreads to capitalize on further gains. The critical support level to watch is 6771.75; a break below this pivot would invalidate our immediate bullish thesis. Until then, any weakness should be seen as a potential buying opportunity.
The CBOE Volatility Index (VIX) is trading near 13, reflecting low market anxiety and supporting the case for a continued, orderly advance. Our upside price targets are in the 7007 to 7029 range in the coming weeks. Traders should remain disciplined, as even in strong trends, pullbacks to recent support levels like 6936 are possible.
