July 31, 2022

S&P 500 / Elliott Wave Update 7/31/2022 by Michael Filighera

Friday’s trade was not unexpected and did produce some solid tradable/profitable trades.  The ES again started lower and “turned on a tick” to start heading up.  It was an uptrend on an intraday basis. The ES reached 4144 before losing steam and dropping back into the bell and then the after hour of trade.  With expiration behind us as well as the major tech titans’ earnings reports, the market now needs to deal with reality and what comes next.

For tomorrow, the ES may still have a bit further to go on the upside before the “C” wave is complete and in turn the Minor wave 2.  Once complete though, a turn lower would be expected.  The intensity should increase as well as the market begins to break back below the moving averages.  As far as support Fibonacci support levels on the Daily chart for on the way down come in at 4017, 3872, and then 3639.  The Daily 8 MA is at 4028, the 20 and 50 MAs are showing the 50 EMA at 3963 along with the 20 and the 50 SMA at 3926.