December 8, 2022

S&P 500 & NASDAQ 100 / Elliott Wave Update 12/08/2022 by Michael Filighera

Thursday’s trade was helpful to the “labeling” by bringing clarity to the subminute and minute labeling.  I have made small changes to both the ES and the NQ showing the completion of minute wave 3 of Minor wave 1 at the Globex low overnight.  That then suggests those lows completed minute wave 3 with a minute wave 4 still in progress but likely within the finishing stages.  In both the ES and NQ once minute wave 4 is complete the expectations are for a finishing minute 5th wave to take over and bring the markets below the current lows for the sequences.  I update the Fibonacci retracements for what may be left to complete in the minute 4th waves and then the Fibonacci extensions for the minute 5th waves.

Tomorrow pre-market the PPI- Final Demand data will be released at 8:30 AM EST and Consumer Sentiment at 10 AM EST.  Both in my opinion can carry a punch in either direction.  Tomorrow is also expiration and volatility is likely to increase due to the expiration.  In play today were several of the tech titans and I would suspect that will remain the case for tomorrow.  The play, by the way, can come to both the upside and downside.  Remember directional moves of size will push prices through strike prices and in many of the larger titans those strikes are every point below 150 and above 150 every 2.50 points.  Volumes were light today for the most part and should that remain the case tomorrow it would create additional volatility as the supply/demand equations flips from buy to sell quickly.