September 18, 2022

NASDAQ 100 & S&P 500 / Eye of the Storm Podcast 9/18/2022 by Michael Filighera

Friday’s expiration did see a break to new sequence lows at 3853 in the ES and 11778 in the NQ. These levels may have completed Minor wave 1 of the Intermediate 3rd wave down that began off of last Tuesday’s highs. There remains however, the potential for an additional smaller leg down to complete Minor 1 and set the stage for a Minor 2 rally.

The FOMC meeting begins on Tuesday and the results will announced on Wednesday at 2 PM EDT. I’m not anticipating that the market will launch a stronger rally so if Minor 2 is in force it may come in weak. I lay out based on the current lows holding Fibonacci retracements for a Minor 2 rally — I also discuss the continuation of the Minor wave 1 leg down and include Fib levels to contain it. Either way, my thoughts are for a quiet more range bound market that may increase the downside range over Friday’s lows.

I also begin on the weekly chart and discuss the Elliott Wave count(s) and Fibonacci extensions for the larger Primary “C” wave down in progress and the Intermediate wave 3 down that is also in progress. I also update the Fibonacci extensions for the respective Intermediate 3rd wave declines.

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