May 17, 2023

NASDAQ 100 & S&P 500 / Elliott Wave Update 5/17/2023 by Michael Filighera

Wednesday’s trade finally saw the groundhog “die” — with the “rumor” of the stronger potential that the debt ceiling debacle will be resolved as told by the Speaker of the House and the White House spokesperson.  Well, it was a classic “buy the rumor” move in both the NQ and ES.  And after the thought sank in a massive, short covering rally took over and blew the doors off of resistance levels again in the both the ES and NQ.  Once again, the NQ ran for the brass ring smashing and thrashing its way through all resistance up to 13650.  The ES did finally thrust higher albeit not out of a triangle pattern.  Yes, I have finally attempted to label the sideways action.

Both markets continue to carry upside potential, so I don’t believe it is over just yet.  I address the additional resistance zones in both markets and include break points should the markets take another turn lower.

Thursday pre-market – Philly FED factory survey and Initial Jobless Claims at 8:30 AM EDT, at 9:15 AM FED gov Jefferson will be speaking and then at 9:30 AM Vice Chair Barr will be testifying before congress.  At 10 AM EDT – Existing Home Sales, and U.S. Leading Economic Indicators will be released.