July 27, 2021

Elliott Wave Update – NQ – July 27, 2021

Tuesday’s trade added much needed information as to direction and the current Elliott count.  The NQ sold off over $300 at one point before recovering to finish the day down $233.  Microsoft, Google, and Apple reported earnings after the close.  Even though all three surpassed expectations from the “street” Microsoft and Apple initially rallied a bit but ended by falling below their respective closing prices.  Google “blew the doors” off of their earnings yet again producing a $61.11 billion dollar profit for the 2nd quarter.  The stock raced back above 2800 to a new all time high before dropping back towards its close at 2736. What does this all means for the current Elliott count? As you can see I have placed the end point for the minute wave 3 advance at yesterday’s closing high at 15134.  I will keep it there for now, but I don’t think it will hold.  The NQ does appear to be headed lower overnight and likely tomorrow as well. A drop below today’s low at 14774 would leave a 5 wave decline off of the 15134 high and put a completion point at that level for Minor wave 5, Intermediate wave 5, Primary wave 5, and Cycle wave 3.  What would change that is the NQ continuing to rally overnight without dropping to a new low.  Should this occur then the larger advances are again in force with expectations for moves to new all time highs again.  Tomorrow then does seem to be a “make or break” day.  Amazon and Facebook report after the close and the Fed announcement is at 2 PM EDT with the Fed chair’s press conference at 2:30 PM.  Hopefully everything will be cleared up after tomorrow’s trading sessions.