November 2, 2022

NASDAQ 100 & S&P 500 / Elliott Wave Update 11/02/2022 by Michael Filighera

Wednesday’s trade was a good trading day.  Both the ES and the NQ gave ample opportunities to trade and even if you had some losses, it was possible to recover and end positive on the day.  I know this because I did it today — and all within the “confines” of a small account.  The FED announcement was not more or less than what was expected.  Initially as I discussed doing what was predicted shouldn’t create a strong reaction to the downside – which initially it didn’t.  The “Fed’s got to pivot” crowd though quickly combed through the announcement and found the “less hawkish” statement and released by buy orders in mass.  This proved to be opportunity #1 to make some serious money. After Powell started his press conference opportunity #2 presented itself as the markets began and continued to sell off.  The turns were strong taking the Dow from being up over 300, (I believe) to down over 500 by the close.  The Russell was gutted somewhat after leading the charge higher for the past several sessions.  The NQ and the ES both turned hard and headed strongly lower.  All in all, a good trading day.

Tomorrow pre-market we’ll get a look via the Jobless Claims data as well as international trade in goods and services into any additional hints at inflation.  The stronger picture for inflation will come with the Employment situation data on Friday also pre-market.

I have updated the Elliott labeling as well as the Fibonacci retracements and extensions.  I have labeled the Intermediate wave 2’s as complete in both the ES and the NQ.  This suggests we are in the initial stages of an Intermediate wave 3 decline.