SP500 technical analysis and NASDAQ analysis for today July 20th using Elliott Wave Theory- The bulls took charge and blasted the market higher in a strong move up. This opens the door to a potential bottom being in place.

SP500 Technical Analysis

SP500 technical analysis is telling us that the bulls took the market higher in an explosive move and should be challenging the 4000 region very soon. We expect them to push up toward the 4040-4100 region and start a pullback from there. At that time the pullback will tell the story. If they can hold wave support and take out the wave 3 high then we have a potential leading diagonal up off the lows that would signal a bottom. If not we would look for support around 3800.

However, if the market can’t hold the B wave support we look at a potential drop towards 3300.

NASDAQ Analysis

NASDAQ analysis is telling us that the bulls invalidated the triangle and are now looking for the 12550 region. From there we would expect a pullback and that will tell the story. If they can hold wave 4 and take out the 3 high then we could have a bottom in. If not they need to hold the 11700 region in wave B. A break of that support would indicate a lower low at 10500-600 coming.