May 11, 2023

NASDAQ 100 & S&P 500 / Elliott Wave Update 5/11/2023 by Michael Filighera

Thursday’s trade was limited by more sell pressure in the ES and buy pressure in the NQ.  It did produce a larger amount of sideways trade with moments of stronger moves in both directions.  I have updated the overall patterns in both the NQ and ES and have actually labeled the NQ within the Minor 5th wave — and within the Minor 5th wave it appears that minute wave 5 is forming a diagonal triangle.  That diagonal triangle also appears to be in its finishing stages.  Thus, the NQ looks closer to finishing the Minor 5th wave and in turn the Intermediate C wave and in turn the Primary B wave countertrend rally.  What this means for the bigger picture is that the markets should fall into the beginning stages of an impulse move in the way of a Primary C wave decline.  Trading should become more impulsive to the downside as the market break back into “trend” which has been down since the January 2022 highs.

Tomorrow, premarket look for the Import Price Index at 8:30 AM EDT and Consumer confidence at 10 AM EDT.