July 20, 2023

S&P 500 & NASDAQ 100 / Elliott Wave Update 7/20/2023 by Michael Filighera

Thursday’s trade was again ( and again and again) interesting. The market maybe saw about 2 to 5 minutes of follow through in the way of looking for additional upside — the sellers showed up in mass to dump TSLA and then NFLX, and then NVDA, MSFT, AAPL, GOOGL, AMD, AMAT – etc…etc. The NQ saw the proverbial plug get pulled on Thursday with the chart pattern taking a quick defensive posture in that the alternate view suddenly popped into view. Yes, while I can’t discount or negate the continuing potential for another turn higher with additional new highs on tap — the NQ is also playing ‘chicken’ with negating the preferred count and relinquishing the crown to the alternate count. I review what would need to occur to conclude the change and also review the Fibs for the 4th waves — break levels where negating comes into view. Tomorrow is July expiration and it is being reported as being heavy on the “gamma” – likely due to the persistent “dispersion” trade that reversed or started to reverse in the NQ. With a fairly large amount of gamma remaining in play across many underlying components – there should be a fairly large amount in the size and duration of the periods containing position adjusting as gamma comes in and out of play. I discuss the importance of watching levels that could be touched, penetrated or left behind and each could produce a recognizable pattern that will contribute to the possible changes in progress that will effect the big picture. There are no econ stats being released on Friday.