July 20, 2022

S&P 500 / Elliott Wave Update 7/20/2022 by Michael Filighera

Wednesday’s trade was not as strong to the upside as Tuesday, but strong enough to push the ES to resistance at 3971 with today’s high being 3977.  The pattern in progress remains a Minor wave 4 countertrend bounce.  Within Minor 4, it still appears that the triangle pattern has been invalidated leaving Minor wave 4 as an A-B-C structure.  Waves A and B are complete and within wave C today’s high looks to have completed wave 3 of C – with the pull back now in progress.  This move should drop the ES towards 3938 with potential for a drop back to the hourly 50 which is at 3919.  This move would complete wave 4 of C and leave a finishing 5 wave of C to occur.  Resistance remains at 3977 to 4000, and then 4025 to 4040.  Once complete, expectations would be for Minor wave 5 down to begin with a move below the hourly 50 as well as a break below the hourly 200 EMA at 3866 and the 200 SMA at 3857.  Ultimately wave 5 should also break below 3639 and also 3600, 3500, 3400, before finding support to complete the move at 3375 to 3225.  Once underway I will be able to tighten the downside expectations.