Friday’s trade was another very directional day with “purpose.” The ES again started the session at the highs with the sellers making their intent clear quickly. The triggers continued to line up to pressure towards to the sell side. Being an expiration added selling pressure at price support within the indexes. On an Elliott basis the markets are sending confirmation and support that the Intermediate wave 3 is in force and the ES is subdividing as expected. This being the case drives the scenario that next week will be another heavy down week in spite it being within the tech titans such as AAPL, AMZN, FB, GOOGL, MSFT, INTC and others. I am encouraging traders to keep expectations in check when it comes to “needing” a bounce. They could come in short or extended against the grain. Monday will be interesting — allow for a bounce but don’t fall in love with it. Err to the downside if anything and always close a trade when it becomes invalidated. Support levels should be found at 4245, 4192, 4130, 4070, and then 3920. Resistance should line up with the MA’s.
April 24, 2022