November 7, 2022

NASDAQ 100 & S&P 500 / Elliott Wave Update 11/07/2022 by Michael Filighera

Monday’s trade initially saw choppy trade making it more difficult to catch any “runners” – the NQ was “choppier” than the ES, but both presented challenges to trading a smaller account with tighter risk profiles.  Nonetheless, the EW continues to build on the Minor wave 2 still in process.  In the NQ I have adjusted the labeling to reflect Friday’s 10636 low as being the completion point for Minor wave 1 of Intermediate wave 3.  I also review the updated count off of that low to reflect where the NQ is within the Minor wave 2 bounce.

I discuss some of the destruction within the NASDAQ for stocks such as LYFT and VRM – both early highfliers carry strong potential for big gains over time.  Both ended up putting in their all-time highs within months of going public and in the case of Vroom have yet to show a profit.  While it may seem that the markets have “baked in” a recession I’m not so sure that it is complete.  I continue to see what I’m believing to be strong rotation out of tech stocks and into mid to small cap stocks.

For Tuesday, there aren’t any major economic data being released so I’m of the opinion that the ES and NQ will continue to be somewhat rangebound to higher.  I give resistance levels for both markets and what to look for in terms of a stronger break lower.