I see a possible large ABC correction made up of a 1) expanded flat and now 2) a zig zag. See notes on chart.
If this is accurate, then we could still drop as low as 3850. There is a gap on April 5, 2021 that has yet to be filled. The correction I am estimating would make that happen. The other orange line shows where the S&P jumped above the trading channel (green) that started back in the 50's. I have seen price action in the past that likes to retest these levels before finding support.
If that works out to be true, then we could see a good rally to test ATHs later this year.
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I made a mistake with wave C fib levels. I did not start it at the correct spot. My original guess actually comes in at 1.236. It could technically go as low as 3700.