Thursday’s trade was impressive to watch and left me saying “What a difference an earnings report makes!” The ES continued to get slammed lower on Thursday as the downdraft from FB’s earnings worked its way through the various component stocks. Add on top of that the markets perception of what to expect from AMZN as the company was due to report after the close. And report they did – the stock closed at 2777 and ran initially to 3000 before eventually reaching just under the 3400 mark. The ES sank to a low of 4462 into the close managing to finish the session at 4471. After AMZN’s earnings the ES shot up reaching 4520 after hours. It was the move I needed to see to give confirmation that the current Elliott count remains valid and in force. Yesterday I marked the 4585 high as the completion point for minute wave 3 of Minor wave “C”. Today’s low at 4462 is being marked as the completion point for minute wave 4 of “C”. This suggests the launch after AMZN’s earnings was the start of minute wave 5 of “C”. Wave 5 would be expected to carry the ES back above 4585 and on up towards the 4641 level before completing. I have added the Fibonacci extensions for wave 5.
February 4, 2022