December 19, 2022

S&P 500 & NASDAQ 100 / Elliott Wave Update 12/19/2022 by Michael Filighera

Monday’s trade was a small surprise in that the Minor 2nd waves I was anticipating didn’t show up.  However, as I mentioned last night should the market turn lower again today it would suggest either that Minor wave 1 wasn’t complete – which was my first choice – or that Minor wave 2 came in very weak with the market now heading lower in the initial stages of the Minor wave 3 down.  That could still be the case, but I’ll need stronger confirmation of it being the case and that would come with another stronger down day tomorrow.  And when I say stronger I’m referring to both the ES and NQ breaking below the additional Fibonacci support levels given should the small minute wave 5 of Minor wave 1 still be in process.

For tomorrow, I’m still expecting Minor 2nd waves to carry the ES and the NQ higher.  The structure will be an A-B-C .  I have updated and included the Fibonacci retracements for the 2nd waves.  I also review the Fibonacci extensions for the balance of the Intermediate 3rd waves that remain in process.  Tomorrow pre market the release of the latest Housing starts and permits at 5:30 AM EST.