October 21, 2021

S&P 500 / Elliott Wave Update 10/21/2021

Thursday’s trade was amazing, but not until right after the closing bell.  I was putting the finishing touches on the revised labeling for the ES when I received a phone call from a trading buddy who brought my attention to SNAP and their earnings report.  Snapchat did not blow the doors off of earnings they blew the doors in — the stock closed at 75 and was at the time floundering around 52.  The forward guidance was lower and that the company blamed on AAPL.  Seems AAPL blocks SNAP’s attempts to hijack data from AAPL as to what folks on their iphones et al, are looking at or buying.  Well the ensuing downdraft took FB down $20, AMZN down $22, SNAP down $23 and to the blame holder AAPL $0.22!  Remember while I feel we are still in a “B” advance I have felt the end was near but I didn’t know what would bring about a sudden reversal — well maybe — just maybe – the hit that starts the downward avalanche is in Social Media stocks and all the spill over into other tech sectors.  I guess we’ll see.  Meanwhile back at the ranch – I was looking for the buyers to remain in control tomorrow, that however may be put on hold.  The ES dropped $12 quickly off the closing high.  A break below 4514 would most likely produce a round of acceleration to the downside and increase the odds that the highs are in for now.  So, I’m feeling that in order to keep the upside picture alive – the buyers, whomever they may be, will need to “put on their big boy pants” and push the ES above 4549.  Can that happen — of course it can!!  Now also please keep in mind that tomorrow is Friday – an expiration Friday – and an increase in volatility with prices move up and down through strike prices will create a chaotic atmosphere in the futures markets.  Stay on your toes folks — Trade Smart – use your moving averages, Fibonacci levels, Elliott levels and don’t get married to either side – as I’m sure both will take control tomorrow.