May 25, 2022

NASDAQ 100 / Elliott Wave Update 5/25/2022 by Michael Filighera

Wednesday’s trade began to show signs the buyers were more eager to step in – for whatever the reason – Which did give some necessary support to a Minor 4th wave being in force.  The NQ did manage late in the session to move above 12000 reaching 12035 before dropping after the close.

I have not made any chances to the overall labeling or EW count – therefore I still need to allot a 50% probability for both the upside scenario and the downside scenario.  The weakness and inability for the NQ to move back above 12100 and ultimately up to 12900 to complete the Minor 4th wave speaks volumes towards the “repricing” amongst component companies continues.  The selling pressure has put a pause in being more aggressive buying, but there remains a fair amount of bottom fishing.  I don’t recommend it at the moment – bounces yes – but keep in mind that bounces are at the moment coming in weaker than expected.

The NQ remains in the process of tracing out what I’m labeling as a Minor 4th wave correction.  The structure is now suggesting the potential for a 4th wave triangle pattern to be in play.  The wave labeling would be A-B-C-D-E and all 3 waves internally – and it should form a wedge.  Ultimately the E of the triangle should break above 12042, 12075 and get towards 12100 before a reversal would occur.  Currently it appears that waves A-C are complete with wave D in motion now and wave E still expected.  The thrust out of the triangle should be to the downside.