Important Support and Resistance Levels for U.S. Stocks

Elliott wave patterns for the S&P 500 (SPX) reveal important points to watch on 06/09/25.

After the 04/07/25 U.S. stock market bottom the Nasdaq 100 (NDQ) was leading the way higher.  In mid – May – NDQ had a subtle sign of weakness.  On 05/16/25 the S&P 500 (SPX) made a new rally high that was unconfirmed by the NDQ.  This phenomenon occurred again on 06/06/25 when the SPX made a new post 04/07/25 rally high unconfirmed by the NDQ.

The 06/05/25 blog “Tesla Inc. Downside Action” noted that only one of the “Magnificent Seven” stocks – Microsoft Corporation (MSFT) has been able to make a new – all-time high.

These bearish divergences could be the prelude to a significant decline for most U.S stocks. 

The SPX – 30 – minute chart courtesy of Trading View shows the prime Elliott wave count since 04/07/25.

This wave count illustrates the post 04/07/05 rally as an Elliott wave – Single Zigzag.  If correct, this structure could be the mid – point of a larger decline that began at the SPX all-time high on 02/19/25.   Subsequently, the most likely scenario is an SPX decline that goes below the bottom made on 04/07/25.   Presumably this drop could last as long as the SPX February to April decline.  If so, another bottom could be made sometime in August.

Please note the rising trendline that intersects with the 06/05/25 low at 5,921.20.  A break below this level could be very bearish.

The SPX – 15 – minute chart zooms in on the action since the 05/23/25 low.

It appears the SPX may have completed an Elliott wave – Ending Diagonal Triangle (EDT).  These are termination patterns of the larger trend.  They only appear in fifth waves of motive structures and in the “C” wave of corrective patterns.  

EDT’s usually form in a contracting wedge and each of all five waves subdivide into three waves or a combination of three waves.

The fourth waves of EDT’s almost always cross into the territory of the first wave.   Frequently there’s a throwover of the trendline connecting the termination points of the first and third wave.  Note the throwover made early in the SPX 06/06/25 session.

After completion of an EDT there’s usually a rapid retracement back to the EDT point of origin.  In this case it’s the 05/23/25 bottom in the 5,760 area. 

The SPX – 5 – minute chart examines the action after 06/05/25.

Note the presumed Minuette wave (v) -up subdivides into three waves. 

The subsequent Elliott wave pattern after the 06/06/25 peak is not the clearest.  The presumed Minuette wave (i) -down is tiny.  The subsequent Sub Minuette wave – a is a combination wave with a truncated Quantum wave “c”.  The entire Minuette wave (ii) is an Elliott wave – Inverse Expanding Flat. 

The best benefit of Elliott wave theory is that you can quickly determine if the analysis is wrong.  

In this case it could be very quick.  If the SPX moves above its high on 06/06/25 at 6,016.87 the Ending Diagonal wave count is invalidated. 

A break below the SPX 06/06/25 bottom at 5,978.63 could trigger a rapid and powerful drop down to the 5,920 area.