August 15, 2022

S&P 500 / Elliott Wave Update 8/15/2022 by Michael Filighera

Monday’s trade again produced a strong rally with the ES reaching the intraday high at 4307. As I’m sure many traders have realized it would appear that the rally in the ES is being controlled by the rally in AAPL. However, that being the case I continue to view the move as part of the larger corrective process in force off of the all-time high at 4808. Both views #1 and #2 remain in play and continue to hold an equal probability of being in force.

Of note today, the VIX has dropped below 20 closing today at 19.95. I discuss the previous times this has happened during the current corrective process. One being in March 2022 and then in June. If the pattern holds true, then it would seem the market is looking for a turn lower.

I also provide support and resistance for the continuation of the rally and then the turn lower.

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