The S&P 500 has returned to the important 7,500–7,600 support zone, which previously acted as resistance in June and July. With only three waves down from the highs and a nice impulsive reversal higher, the current correction could be a wave 4 before another push higher. A break above the channel resistance and 7,700 would strengthen the case for wave 4 being complete and wave 5 of the ending diagonal developing. We should still watch for short-term pullbacks and potential exhaustion during the final leg higher.
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