July 7, 2022

S&P 500 / Elliott Wave Update 7/06/2022 by Michael Filighera

Wednesday’s trade saw progress made on both preferred views at the moment.  Each were broken down to show why each continue to carry a 50% probability of being in force.  The difference between the two is the height of the current rally.

The Daily view continues to suggest and support a larger A-B-C structure to form the Minor wave 2 countertrend correction.

The hourly view continues to support the ES completing Minor wave 2 at the 3950 high with a minute wave 1 of Minor 3 finishing at 3741 with minute wave 2 countertrend correction within its finishing moves at the 3875 to 3900 level.

The resolution of both would be the continuation of the downside move either at the beginning stages of the Minor 3 wave down using the Daily view or minute wave 3 of Minor 3 via the hourly view.

I lay out the Fibs and levels within the update — also, remember a main factor to keep in mind is that as the Elliott read to me is suggesting – the current rally upon completion will be followed up with a swift turn lower and picks up speed and intensity.  Unfortunately, we need the market to lead us to it.