July 19, 2022

S&P 500 / Elliott Wave Update 7/19/2022 by Michael Filighera

Tuesday’s trade may not have looked like a “barn burner” but it was and then some.  The ES took out the triangle pattern and brought back a zigzag pattern, (A-B-C) to complete Minor wave 4.  The money flow was also strong, as dollars come in to be placed rather than exiting and looking for a place to be.

I discuss tonight the difference between looking at the markets “objectively” versus “subjectively” and how that is applied to trading.

For tomorrow, I would expect additional upside whether that happens overnight during Globex is TBD.  Upside Fibonacci resistance comes in at 3971 to 4000, 4075 to 4100, and then 4230.  Wave C currently unfolding appears to be in wave 3 of C with a small pull back likely with additional upside still needed before wave 3 is complete and in turn wave C.

Should the market break down from here – 3950 – as it has twice before the move may be as swift as well and would result in a quick break back below the 8 and then 20 MA’s.  Support should be found at 3850 to 3800 and then 3700.