May 18, 2022

S&P 500 / Elliott Wave Update 5/18/2022 by Michael Filighera

Wednesday’s trade was a slow and steady grind lower. The ES topped at yesterday’s Globex opening with the market dropping without pause today. The ES finished the session at 3924 and dropped to a low at 3905 after the close. It looks and feels like the minute 3rd wave is active in larger continuations of the Intermediate 3rd and the Minor 3rd waves. So basically, we have a 3 of 3 of 3 move in progress. And the trend is down!

All previous analysis remains valid, all previous support and resistance remains valid. We may get a few stronger down days before a stronger more sustained bounce takes over.

As I discussed in the update – there remains potential for the ES to once again turn around and rally higher and once again get “gummed” up around the 4095 to 4124 level – a break below 3855 invalidates the upside for now.

Downside support comes in at 3868, 3855, 3815, 3776, 3740, 3643, 3537, 3472, and then 3365 to 3325. Ultimately, expectations remain for Minor wave 3 to find support to complete at3400 to 3365, with Intermediate wave 3 finding support to complete at 3326 to 3300.

- SINCE 2002 -

NinjaTrader® is a registered trademark of NinjaTrader Group, LLC. No NinjaTrader company has any affiliation with the owner, developer, or provider of the products or services described herein, or any interest, ownership or otherwise, in any such product or service, or endorses, recommends or approves any such product or service.

Commodity Futures Trading Commission: Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.