July 18, 2022

NASDAQ 100 / Elliott Wave Update 7/18/2022 by Michael Filighera

Monday’s trade saw the NQ trade initially higher in what appears to be the completion point for wave C of Minor 4.  The high was reached within the first hour of U.S. trade at 12186.  After a couple more hours of choppy trade, AAPL announced some adjustments to currently hiring quotas and compensation packages.  That produced a thrust like move off the highs and down to session lows at 11857.

I initially show the Elliott labeling as a completed triangle with the addition of waves D and E – thus the Minor wave 4 under this assumption would also be completed.  The initial thrust that did start today added some support to the pattern being complete.  However, confirmation is still needed before I will add the Minor 4 label.  That confirmation may continue during Globex and should break below 11800, 11700, 11600 and then 11500 to give a very clear signal that the Minor wave 4 is complete.

The other side of the coin suggests that wave C of Minor 4 completed today with the move lower being part of Wave D.  If this is the case, additional downside may be likely and should it occur I would expect it to hold above the lower channel line which currently is above 11600.  If Wave D is in force and holds support – look for wave E (up) to take over and again bring the NQ back towards the upper channel line at 12188 to complete the triangle and the Minor 4.  Again, should this be the case, the same expectation of the NQ “thrusting out of the triangle” would remain.  A bit longer term I am still expecting a Minor wave 5 to bring the NQ below 11068 and down towards support at the 10670 area.