Weekly Recap and Forecast: Market Optimism Continues As S&P500 And Dow Jones Reach New Record Highs

1. Brief analysis of the image 1:

• What is shown: a weekly chart of the S&P 500 with Elliott wave markings (i-ii-iii-iv and possible v) and Fibonacci levels. The date on the chart is August 30, 2025.

• Current status:
• The index is trading near historical highs in the 6460–6515 zone.
• The yellow area and arrow indicate the likelihood of a local reversal/correction after the completion of wave v.
• Resistance cluster: horizontal level near 6460 and 127% extension ≈ 6511.

• Key levels:
• Resistance: 6460–6515 (for now a “ceiling”; consolidation above opens the way higher).
• Nearest supports: ~6147 (100% Fibonacci and previous breakout), then 6000–6030, 5785/5730, 5500. Deep support: around 4800 (wave iv bottom).

• Possible scenarios:
1) Sideways/correction from 6460–6515. Loss of 6147 this week will intensify the decline to 6000 and 5785–5730.
2) Breakout and weekly consolidation above 6515 — continuation of momentum with targets at 6600–6700 (next extensions/clusters).
3) Below 5500, the risk of a larger correction towards 5000 increases.

• What to monitor:
• Weekly closes relative to 6460/6515 and 6147.
• Volumes and candlestick patterns at resistance (pin/engulfing — in favor of correction).
• Divergences by oscillators during the week (typical for the 5th wave).

This is not financial advice; it is reading levels and scenarios on the provided chart.

2. Briefly analysis of the image 2:

about what is visible on the chart and what conclusions can be made.

What is in the image:
• Monthly chart of the S&P 500 index (SPX), date in the header: 30 Aug 2025.
• Last candle: approximately O 6349 / H 6508 / L 6209 / C 6460.
• Elliott marking: 1-2-3-4 is behind, wave 5 with sub-waves i-ii-iii-iv-v is in progress/completing.
• Two ascending trend lines: long-term (since 2009) and steeper (since the 2022 minimum). This results in a converging "wedge/diagonal".
• Yellow horizontal resistance zone near current prices (around 6.4-6.6 thousand points).

Analytical conclusions:
• The long-term trend remains bullish, but the structure and geometry are similar to the final diagonal in wave 5 — a typical “risk zone” for the formation of a medium-term/long-term peak.
• Elliott’s base scenario: the final sub-wave v is close to exhaustion; the completion of wave 5 is often followed by an A–B–C correction, which can take away a significant part of the growth of wave 5.
• Key levels/scenarios:
• Resistance/target: 6.5–6.7 thousand; a sustainable monthly breakout and holding above will mean an extension of wave 5 (a higher target, including 6.8–7.0 thousand).
• First signs of a reversal: a monthly close below the steep 2022–2025 trend and a breakout of the last lows of the month (6.2 thousand area). This will open the way to a flatter long-term trend.
• Support zones during a possible correction: 6.2–6.0 thousand (the closest), then the area of ​​intersection with a flat trend (approximately the middle of the 5th thousand points; more precisely, it depends on the time of the touch).
• Tactics:
• Long-term: the zone near resistance is a place to reduce risk/rebalance if the goals are achieved.
• Active traders: wait for confirmation — a breakout and a monthly close below the trend + a retest from below. To continue the bullish trend — record whether the price will hold above 6.6–6.7 thousand.

What else to check to confirm the idea:
• Divergences on monthly RSI/MACD and market width (AD-line, the share of stocks above 200DMA).
• VIX dynamics and credit risk spreads.
• Reports of large companies and the Fed rate — at the peaks of the 5th wave, a slowdown in profits and a tightening of financial conditions are often observed.

Important: this is not an investment recommendation. If you want, send me the timeframe/data (for example, trend levels or CSV with prices) - I will calculate exact Fibonacci targets and stop level options for your horizon.

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