The S&P 500 (SPX) has reached a new high, reflecting strong upward movement since its low in November 2025. This rise follows a five-wave pattern similar to Elliott Wave analysis.

Wave Pattern Analysis

The first wave, ((i)), ended at 6986.33, marking the start of the upward trend. Wave ((ii)) formed a zigzag pattern and concluded at 6788.03, indicating a significant level of completion. Next, wave ((iii)) took the index higher, reaching 6988.82 after several ups and downs. While we expect some short-term corrections, the overall trend remains positive as long as the index stays above 6788.03. Market resistance appears weak, with buyers likely to step in during corrections, typically in three, seven, or eleven swings. This shows that the market remains strong. The article also covers other financial assets, such as gold, which is performing well ahead of Federal Reserve decisions. Additionally, it examines currency pairs like EUR/USD and GBP/USD, as well as cryptocurrencies like Bitcoin Cash and Avalanche. There is also advice on selecting brokers and trading strategies for 2026, addressing various needs from low spreads to high leverage in different market segments.

Market Trends And Opportunities

The S&P 500 achieving an all-time high confirms the bullish trend that started in November 2025. This upward movement is backed by positive economic data, like the recent report showing a solid 2.5% annualized growth in Q4 2025 GDP. This suggests that the upward momentum is well-supported. We anticipate a brief pullback in the current rally before hitting new highs, completing a short-term wave structure. For derivative traders, this dip provides a chance to start or increase bullish positions, such as buying call options or selling cash-secured puts. With the VIX currently around 13.5, option premiums are not excessively high, enhancing the appeal of these strategies. A key level to monitor is 6788.03; as long as the index remains above this mark, any pullbacks should be seen as temporary corrections. This strong market structure is further supported by easing inflation, with the December 2025 CPI at 2.8%, reducing pressure on the Federal Reserve. As a result, market expectations, indicated by the CME FedWatch Tool, show over a 90% likelihood that the Fed will maintain current interest rates at its next meeting. Historically, we have seen similar strong uptrends, such as in 2023, where momentum sustained the market even amid concerns about valuations. The current rally is also validated by a robust earnings season, with major tech and growth stocks exceeding revenue forecasts for the last quarter of 2025. This trend suggests that buyers will likely continue to appear during any market dips as they seek to benefit from ongoing growth. Create your live VT Markets account and start trading now.

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