October 20, 2022

NASDAQ 100 & S&P 500 / Elliott Wave Update 10/20/2022 by Michael Filighera

Thursday’s trade started with a strong upswing in both the NQ and ES.  Reaching sessions highs within the first 30 minutes of trade.  The next five hours of trade though produced a fair amount of selling amongst a few component stocks that continued to hold gains, such as the chip makers, IBM, and AMZN.  There were others of course, but those are the ones I tend to see more actively.  After the close though, SNAP reported earnings and they were not well received.  In fact, the stock quickly dropped 20% and last I looked was trading at $8. The slide itself spread quickly to other social media stocks of which META is right there and got smacked also — the stock closed down $1.70 on the day and after hours dropped an additional $5 reaching 126.

I have updated the Elliott labeling and counts to reflect what I mentioned during last night’s update and then again through the “comment section” after I posted the update.  The Intermediate wave 4 will be taking more time to unfold and I’ve labeled it accordingly.  While last night’s mention of a more complex pattern i.e., a double or triple a-b-c, it does appear that it is subdividing within the Minor degree A-B-C with Minor A forming 3 waves of minute degree and also now Minor wave B forming 3 waves of minute degree as well.  I’ve added the Fibonacci retracements for the Minor B wave and also the Fibonacci extensions for what should be the balance of minute wave C of Minor B.

Tomorrow is a monthly expiration and as of late expiration Friday’s have seen an extra increase of volatility.  It appears that pattern will continue with tomorrow’s expiration.  There isn’t any economic data, and any earnings reports will come before the market opens.