$SPX Hits 7700, 7900 Comes Into Focus
$S&P 500(.SPX)$
The triangle has now completed, with Friday's low marking the end of Wave 4. Price has since moved above the July 15 B-wave high, confirming that Wave 5 is officially underway.
The breakout is supported by a newly formed daily Fair Value Gap (FVG), which now serves as the first layer of support. As long as price holds above this zone, the broader uptrend remains intact and shallow pullbacks are likely to attract buyers rather than trigger a deeper reversal.
The initial upside target at 7,700 has already been achieved. With momentum still firmly on the bulls' side, the next objective is 7,900, representing the 50% extension of Wave 3.
That said, the market is becoming extended after the recent advance. Rather than chasing strength at current levels, the higher-probability approach is to wait for a pullback into the next bullish daily FVG, where risk-reward is likely to become more attractive.
For now, the technical structure remains constructive, and Wave 5 continues to unfold.
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