October 16, 2022

NASDQ 100 & S&P 500 / Eye of the Storm Podcast 10/16/022 by Michael Filighera

Friday’s trade was in many ways as wild as Thursday.  Both the NQ and ES made early highs and spent the balance of the sessions moving lower.  Currently as I left it on Thursday, both markets looked to have completed Intermediate 3rd waves. with Intermediate 4th waves starting.  While the patterns are somewhat clear, there remains some areas that I am not clear on what to think.  Nonetheless, Friday’s highs likely completed Minor “A” waves of the Intermediate 4th waves.  The opening of Globex today looks to have complete Minor “B” waves, with the markets again turning higher.  I am looking at it right now as the start of Minor “C” waves in both markets and lay out the Fibonacci levels to look for as well as the Elliott levels that would come into play.

I also discuss trading in more detail with regards to recognizing when a market is making a directional change of significance as did take place on Thursday and again on Friday.  I also discuss many of the factors that remain unsettled and will continue to pose a threat to any rallies and by the same token any rallies.

For tomorrow, expectations would be for the rallies to continue as Minor “C” waves continue.  Should the markets break down below Friday’s lows and again below Thursday’s low it would suggest that Friday’s highs completed the Intermediate 4th waves, and the ES and NQ are dropping in the beginning stages of Intermediate 5th waves.  I update the Fibonacci resistance levels for the balance of Intermediate 4th waves and renew the Fibonacci levels for Intermediate 5th waves down.