The rally from the May 13, 2021 low in SPY is unfolding as a five-wave impulse Elliott Wave structure, according to short-term Elliott Wave analysis. Wave 1 concluded at 425.99, up from the low of May 13, and wave 2 ended at 412.94. The ETF begins its upward trend in wave 3 towards 434.76, after a wave 4 pullback that concluded at 427.49. Wave 4 was subdivided internally using a zigzag Elliott Wave structure. Wave ((a)) rallied to 427.60, wave ((b)) rallied to 433.69, and wave ((c)) rallied to 427.49 below wave 3.
The fifth wave is presently underway, and the internal subdivides into five waves to a lesser extent. Wave I of the uptrend finished at 434.46, while wave (ii) of the retreat concluded at 427.52. In wave (iii), the ETF resumes its ascent towards 437.84. Wave (iv) dips finished at 434.80, while the final leg of the upper wave (v) ended at 437.92. In a higher degree, this finished wave I of 5. Wave ((ii)) of the pullback terminated at 434.91. While above wave ((ii)) low at 434.91, the ETF should continue upward in wave ((ii)). Expect declines to find support in the 3, 7, or 11 swing for more gains in the near term, as long as the July 8 low pivot at 427.46 remains intact./n
