March 28, 2022

S&P 500 / Elliott Wave Update 3/27/2022 by Michael Filighera

I spent some time on Friday updating the Elliott labeling on both the cash SPX and the future /ES. It was a clarifying exercise in that the SPX made the first leg down off the all time high at 4808.50 stronger with the 4101.75 low now marking the completion point for the Intermediate wave 1 down – which does give additional confirmation that I was looking for and that is being able to count 5 waves down on the hourly and daily charts.

But what it does do is raise the limitations for the Intermediate wave 2 correction.  The structure will be a Minor degree a-b-c pattern.  Thus far it would be acceptable to say Minor wave A is producing 5 waves up and may be complete at Friday’s 14840 high.  Fibonacci retracements for wave 2 show the 61.8% resistance level is at 4359 .  For now I’m leaving the potential for an additional segment up reaching resistance at 4539 to 4550 to complete Minor A, before Minor B brings the market back down.  Support to start should be found at 4455 to 4429.

I would expect the bullish premium to remain in the calls and larger moves in the future to come from the buy side until Minor wave B down is ready to take over.  Be careful for periods of “boxey” choppiness in the future during wave B down.