July 21, 2022

S&P 500 / Elliott Wave Update 7/21/2022 by Michael Filighera

Thursday’s trade carried much of the recent periods of “choppy” directionless trading that eats away at ones PNL quickly. It has been frustrating at times particularly during the first hours when there has been and usually is volatile in terms of the speed at which the ES will zip higher and lower. In terms of the current EW count, the ES continues to move through a “C” wave to finish the Minor degree wave 4. Within wave “C” waves 1 and 2 are complete and wave 3 is or nearly complete currently. If this is the case – there would still be needed, once wave 3 is done, a 4th wave dip and a 5th wave rally. There remains the possibility that this finishing moves will take the ES above 4000 and up into the 4000 handle — there remains Fibonacci resistance at 4075.

Should for whatever reason the ES break down from current levels – it will likely be “news” driven and maybe have momentum and purpose to move lower. Breaking the 50 and then the 20 MA’s and breaking below 3800 would begin to shut the door to a move higher and usher in the Minor wave 5 decline needed to complete the larger Intermediate wave C and in turn the Primary wave A.

- SINCE 2002 -

NinjaTrader® is a registered trademark of NinjaTrader Group, LLC. No NinjaTrader company has any affiliation with the owner, developer, or provider of the products or services described herein, or any interest, ownership or otherwise, in any such product or service, or endorses, recommends or approves any such product or service.

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.