Friday’s trade was initially eventful in that the ES moved above 4700 reaching a new high at 4711.75. The market then traded lower until the last hour when expiration position squaring took place. While I have labeled Friday’s high as the completion point for the minute wave 5 advance and in turn the Minor wave ‘c’. This then suggests that the expected larger Intermediate degree “C” wave is now underway. But the market is now faced with some decisions on what to do. The first part of the Infrastructure plan is ready to be signed into law by the President. While Elon Musk is trying to make light of the fact that he doesn’t want to pay the higher tax rate the bill being signed into law will create for the uber wealthy. So, Musk decided to put the question to his faithful Twitter followers as to whether he should sell 10% of his Tesla holdings. Thus far the response has been sell it Mr. Musk. Back at the ranch the Elliott pattern continues to advise me to allow for another run for new highs — Fibonacci resistance remains at 4734 to 4760. If the market is ready to begin the expected decline a move and close below the hourly 50 MA at 4669 would begin to signal weakness. For now I’ll see what the US wants to do and trade what is in front of me – hoping the volatility remains in play.
November 7, 2021