Sideways Today - Market Analysis for May 27th, 2026

For the most part, the SPX has been going sideways for the last two days.  Moreover, depending on how you draw the channel, it may still just barely be holding on to this uptrend channel we have developed since the low struck on May 19^th.  So, this could easily be a consolidation before it makes one more push higher to complete wave (v).  

I must reiterate how hard it is being an analyst and knowing how incredibly stretched this market is, yet still suggesting this could push even higher.  In fact, I posted a chart of the NQ this morning and noted how we have basically struck the 4.382 extension of waves 1-2 off the low struck in late March.  That is truly astounding for an equity market at this degree of structure.

But, this is where we stand.   And, until the market begins to break support – starting with 7389SPX, we have no indication that a top has been struck.  And, we would still need to follow through below 7320SPX before we even begin to consider assessments regarding whether we are in the blue wave 2 or the red a-wave.   Yet, the higher we go, the less likely I see the probability that the blue 1-2 will actually hold.  But, we have to take it one step at a time over the coming weeks and months, and maintain an objective perspective in making that determination.