July 5, 2022

S&P 500 / Elliott Wave Update 7/05/2022 by Michael Filighera

Tuesday’s trade ended up being a stronger upside surge taking the ES up from 3744 back above 3800 reaching a high at 3857. As I discussed on yesterday’s update the ES needed to make clear up whether or not Minor wave 2 is complete — well it may be a bit clearer after today, but both a stronger upside and stronger downside move remain at a 50/50 probability of being the path by weeks end.

I include Fibonacci extensions to put some parameters around a continued rally – also within the continuation of the Minor wave 2 countertrend bounce.  I also review that the current highs can also be the completion point for a smaller wave 2, which would suggest that once complete a stronger more persistent drop lies waiting to kick in.

Today’s trading seemed to favor the MANGU, (META, AMZN, NFLX, GOOGL, UBER) stocks and that could change tomorrow with other sectors joining the “relief rally.”  Relief from what I’m not sure.