The 10/23/25 blog “U.S. Stocks Crawling to New Highs?” illustrated the S&P 500 (SPX) could be forming an Elliott wave – Ending Diagonal Triangle”.
The hourly SPX chart courtesy of Trading View updates that potential wave count.
The Ending Diagonal Triangle wave count from the 10/10/25 bottom is still valid. In any five-wave motive pattern the third wave is never the shortest of the three sub motive waves. If the presumed Minute wave [iii] holds below SPX 6,813.85 it will still be the shortest of the three sub motive waves. A move above 6,813.85 will invalidate the Ending Diagonal Triangle wave count.
After the initial gap up on 10/24/25 – SPX stayed in a narrow channel for most of the session. This type of sideways action after a move up is usually a base for the next rally. In the final hour SPX declined. If SPX declines in the first hour of the 10/27/25 session it could be the prelude to a day long drop.
Anything can happen in the markets. The 10/25/25 blog noted bullish evidence, this evidence needs to be examined in the context of what’s happened in the last few months. There’s abundant bearish evidence indicating the bullish mania since the April 2025 bottom could soon terminate.
On 10/24/25 the bulls were able to completely overcome the 10/10/25 micro crash. It’s a good guess there’s joy amongst the bulls. Sometimes joy can quickly turn to sadness.
Four Dimension Trading 