• Home
  • /
  • S&P 500 / Elliott Wave Update 7/12/2022 by Michael Filighera

S&P 500 / Elliott Wave Update 7/12/2022 by Michael Filighera

Tuesday’s trade saw the buyer’s step into some of the tech titans during the Globex session with the ES getting a bit of a boost off the Globex lows. While the opening in the ES did see a boost on the opening reaching the session high at 3876.  The move itself wasn’t as impressive as in the NQ.  Once done though the sellers took over and in the next 15 minutes dropped the ES 36 points to the morning low at 3840.  All the movement though did allow additional insight to what is likely playing out in the ES.

I have labeled the 3922 high as the completion point for wave C of Minor 4.  But before I jump to the conclusion that Minor wave 4 is complete and we are dropping in the Minor 5 wave, I need to consider the possibility that Minor wave 4 is forming an a-b-c-d-e triangle pattern.  If this is the case, we need to allow for a D wave to drop down to support at 3804’ish before again turning higher forming a 3-wave pattern to put in wave E and complete the triangle and the Minor wave 4.  The resolution of triangle patterns under Elliott is that once complete they will “thrust” out of the triangle going the length of the triangle as the expected Minor 5 wave takes over.

If though, the markets decide to “puke” after the CPI number, the ES would/could pick up the pace to the downside breaking below 3800 without any real problems and drop fairly quickly down to 3741.  Ultimately, if Minor wave 5 is in force the 11068 low should be surrendered as the ES heads toward support at the 3500 area.


Tags


You may also like

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

What is your biggest Trade Killer?

Use the Trader Test to find out:

This assessment is one of many designed for traders and investors by Richard Friesen of MindMuscles.com, to help them refine and expand their mental game.

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.

Content on this site is for educational and entertainment purposes only. Nothing on this site should be viewed as trading advice.