Monday’s trade was slow and for the most part range bound. I have added some labelling for the internals of Minor wave 3, where minute waves 1 and 2 are complete and minute wave 3 still in progress but close to finishing as well. Tomorrow, AAPL, GOOG, and MSFT report after the close and I would expect some stronger reaction from the earnings reports. The FED meeting starts tomorrow as well, and that could contribute to an additional quiet day until the earnings are out. Expectations then remain for the current Minor wave 3 to continue higher reaching into the zone from 4433 to 4440, with possibilities for an extended run up to resistance at 4462 to 4492. Once complete from either area of resistance look for a Minor wave 4 correction to begin. Ultimately, expectations remain in place for the current advancing sequences to complete above 4500. Wednesday should also be an eventful day as FB reports after the close and the FED minutes come out at 2 PM EDT with the Fed Chair news conference at 2:30 PM EDT. Amazon reports on Thursday and again I’m looking for a strong reaction from earnings and that would include either direction. Actually, I would expect stronger reactions from all the earnings reports as well as the Fed meeting results and it would include both directions. Hopefully it will produce some good trading opportunities along the way.
July 26, 2021