$SPX
The dashed red line target that was mapped months ago has now been hit — exactly as projected — and the structure is starting to look like a late-stage blow-off rather than a healthy continuation.
Wave 3 already stretched to a perfect 2.618x extension of Wave 1, which is typically a strong exhaustion signature, not a beginning of momentum. Now the final Wave 5 is fracturing into its own internal 5-wave structure — a classic sign that the move is running on borrowed momentum.
At the same time, bearish divergence is building while price still pushes higher — that’s the kind of divergence that often appears right before sharp repricing, not during strength.
S&P 500 and broader indices are now flashing multiple warning signals across structure and momentum. This is where euphoria looks strongest… and risk quietly peaks.
If this structure completes as expected, the reaction won’t be gradual.