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S&P 500 enters short-term correction but may rally once more before a major downturn.

Technical Signals
18 May 2026
FXEmpire
View Source
Neutral
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The S&P 500 has started a short-term correction after showing signs of weakening market breadth and an extended wave pattern. Elliott Wave analysis suggests this pullback is temporary, with one final rally leg expected to push the index higher to around 7,650-7,720. After this last upswing, a significant bear market decline of over 1,000 points is anticipated. This pattern mirrors a similar divergence and correction seen in 2024, indicating caution for investors in the near term.

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