SP500 technical analysis and NASDAQ analysis for today August 22nd using Elliott Wave Theory- The bears were finally able to break through support and have pushed down to the lower support before starting a small bounce in the overnight. We will see if they are able to push directly through.

SP500 Technical Analysis

SP500 technical analysis is telling us that the market was able to break 4249 and 4220 on its way down to lower support at 4203. For now it has held but we will be watching to see how this initial push down concludes. If they hold the 4180 area and bounce it looks like we are in wave 4 and should be expecting an overall down move toward 4100-3950. The wide target is due to the extended move up and the diagonal pattern playing out.

However, if they move directly through 4180 then it may be more likely we are in the bigger move down that targets the 3850-3900 region.

NASDAQ Analysis

NASDAQ analysis is telling us that have broken key support and are sitting at the .236 retrace which is a common retrace level for wave A of 4. If they can hold this region and get a bounce we would look for this to be wave 4 down to the 12870-12260 range.

However, if they break directly below 13000 then it starts to look like we are in the bigger pullback toward 12200.