May 23, 2022

S&P 500 / Elliott Wave Update 5/22/2022 by Michael Filighera

Friday’s trade saw strong selling and a sort of test of the weekly 200 MA – followed by a late very intense buying push take the ES back into positive territory and 100 points up from the low.  Friday was an expiration and I feel that the break back above and the algorithms being triggered to step in and buy along with a strong push in AAPL bringing the stock up from 133 to above 137 was an incredible feat, which forced huge adjustments in the expiring options.  All in all, it produced strong trading opportunities that produced very large profitable trades along the way.

I’ve adjusted the Elliott count to reflect the moves on Friday.  Nothing at this point is suggesting we just go up from here.  Nothing has changed in terms of the reasons the market is going through a “repricing” period while adjustments are made for inflation and higher rates.  With that in mind, the Elliott count remains the same in that I am still expecting at least one additional Minor wave (5) down to reach the targets below 3700.  The count itself was updated to reflect the 3802 lows being the completion point for Minor wave 3.  If this is correct, then the ES is now in the process of tracing out wave A of the Minor wave 4 bounce.

I lay out resistance and support levels to reflect the move — I will wait and reserve the count changes for another day as traders make adjustments and set the tone for the week.