S&P/TSX 60 index Elliott Wave technical analysis [Video]

S&P/TSX 60 Elliott Wave technical analysis

• Function: Counter Trend.

• Mode: Corrective.

• Structure: Navy Blue Wave 2.

• Position: Gray wave 3.

• Direction (Next higher degrees): Navy blue wave 3.

• Details: Navy Blue Wave 1 seems completed; Navy Blue Wave 2 is now active.

Thedaily chart for the S&P/TSX 60, interpreted viaElliott Wave theory, shows the index currently in acorrective counter-trend phase. The structure under focus isnavy blue wave 2, part of a broadergray wave 3 impulsive formation.

The earliernavy blue wave 1appears to have concluded, with current market behavior developing withinwave 2. The next anticipated move is the emergence ofwave 3, which generally aligns with the dominant upward trend and is often marked by strong, sustained momentum.

This setup suggests a likelybullish continuationfollowing the end of wave 2. Traders should observe standard corrective patterns—zigzags, flats, or triangles—to determine the wave’s end. Spotting the transition from correction to impulse is crucial in validating this wave count.

Volume and momentum indicators will be key to confirming the start ofwave 3, which typically delivers the most dynamic market action. Thecorrective phasecurrently presents an opportunity to prepare for a potential breakout move.

The Elliott Wave model provides a structured way to understand price direction. Staying focused on wave development, along with technical signals, will help traders align with market expectations. A breakout in Navy Blue Wave3may present a strong upside trend.

S&P/TSX 60 Elliott Wave Technical Analysis

• Function: Counter Trend.

• Mode: Corrective.

• Structure: Navy Blue Wave 2.

• Position: Gray wave 3.

• Direction (Next higher degrees): Navy blue wave 3.

• Details: Navy Blue Wave 1 appears complete; Navy Blue Wave 2 is now developing.

Theweekly chart for the S&P/TSX 60, analyzed withElliott Wave theory, highlights acounter-trend corrective phasecurrently in progress. The market structure has finalized Navy Blue Wave1, with Navy Blue Wave2now forming within the larger Gray Wave3 framework. This indicates a short-term pullback before the dominant uptrend resumes.

Wave 2 typically retraces part of wave 1’s progress. The current move is expected to follow a conventionalElliott Wave corrective pattern—like a zigzag, flat, or triangle—before transitioning intowave 3, which often delivers the most powerful market action in the sequence.

Traders should closely watch for thecompletion of wave 2, as this sets the stage for a potentialstrong upward move in wave 3. This shift from correction to impulse usually presents prime entry opportunities. Technical signals, such as volume behavior and momentum indicators, can aid in confirming this transition.

This corrective phase may represent abrief pause before a major bullish advance. Once wave 2 finishes, market direction could sharply align with wave 3’s path, offering substantial trend-following opportunities.

From aweekly perspective, this correction fits into the broader wave cycle and presents a key setup for the next impulsive phase. Close monitoring of wave patterns and confirmation tools will be essential for timing strategic positions.

Technical analyst: Malik Awais.

S&P/TSX 60 Elliott Wave technical analysis [Video]