September 27, 2022

S&P 500 & NASDAQ 100 / Elliott Wave Update 9/27/2022 by Michael Filighera

Tuesday’s trade was much more muted than Monday’s.  The ES and the NQ both started the session moving higher before completing the subminute 4th waves.  Both did complete the smaller 4 waves and headed lower to being subminute 5th waves down to complete the minute 3rd waves again in both the ES and NQ.  I review support levels to achieve the expected minute 5th wave lows.

Tomorrow, I will continue to look for the “stair-stepping” process to continue.  As minute wave 3 completes the next minute 4th wave bounces will get underway.  I lay out resistance levels that are likely to control and complete the small minute 4th waves.  I also put out some initial expectations for the additional segments in terms of support to complete.

The battle between technical and reality continues to push forward.  I am expecting it to continue for a while longer with the decline being the winner in this battle for directional control.  Technically, the markets are oversold and based on that many traders are setting up their swing trades for a “relief rally” as the media is calling it.  I discuss the potential for the technical picture to get overtaken by the reality picture of what continues to hammer the global markets.  While bounces are normal even in heavy downside to expect greater or stronger bounces may not be reality at the moment.