SPX Eyes 7000 as Daily FVG Sets Up Wave 5

$S&P 500(.SPX)$ should pull back into the Daily FVG (6893–6871) for W2 of W5.

If that zone holds, price should rally off it and enter a w3/w4/w5 sequence, targeting 7000, with a measured move toward 7020–7050.

A daily close below 6871 would threaten this set up and open risk toward last week’s low (probable invalidation).

Count 1 | Diagonal Extension

Price rallied sharply off Weekly FVG support (6800–6750) and formed a bullish SMT with $Dow Jones(.DJI)$ .

This is a bullish signature that increases the odds of a continued rally toward 7000–7050 for Wave 5.

⚠️ The primary risk is that a new high completes the entire advance from the April low.

Invalidations:

• Below 6789 (probable)

• Below 6750 (hard)

Count 2 | Wave 5 Termination?

With a potential 2/4 trendline break, it’s possible $SPX has already topped.

A fractal 1st/2nd wave may have formed, with price currently pressing into Daily FVG resistance (6938).

A move below 6750 would shift odds toward this count, while a weekly close below 6770 would trigger a mechanical sell signal due to the divergence with $NASDAQ 100(NDX)$ (SMT → iFVG).

That scenario would favor a deeper correction toward the 6550 zone, initiating a higher-degree Wave 1 down.

Invalidation:

- Above 6986

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