October 17, 2022

S&P 500 & NASDAQ 100 / Elliott Wave Update 10/17/2022 by Michael Filighera

Monday’s trade saw a continuation of the Intermediate wave 4 countertrend rally.  The sticking point for me was the late rally on to Friday’s highs being 3 waves up.  After looking into that and putting up Fibonacci retracements I am concluding the internal Minor wave B which also traces out an a-b-c structure produced an irregular “b” wave taking the markets to Friday’s highs.  Thus, the drop into the lows reached at the start of yesterday’s Globex session complete Minor wave B with the rally being the starting waves of Minor wave C of Intermediate wave 4.  I have updated the Fibonacci extensions for wave “C” which continue to suggest additional upside should be expected before Intermediate wave 4 is complete and Intermediate wave 5 down begins.

I also discuss view #2 as I attempt to do each update.  View #2 suggests that Intermediate wave 4 completed at The Globex highs on Friday. This then suggests that Intermediate wave 5 has begun with Minor wave 1 possibly complete at yesterday’s Globex lows with Minor wave 2 completing now.  I include this view due to the many “fires” burning economically, politically, and geopolitically around the world.  I am still holding view #1 as my preferred count for now.