SP500 technical analysis and NASDAQ analysis for today August 23rd using Elliott Wave Theory- The bears continued the selling dropping the market into a key zone. The easy part of the pullback is over, now comes the tricky part.

SP500 Technical Analysis

SP500 technical analysis is telling us that the market was able to break 4200 and sold all the way down to the 4130 area before finding a small bounce. Now we have several paths and many look the same at the start. We have a potential for the 4,5 to take us down toward 4100. We have a B wave bounce that would take us up to 4250-60 and we have a wave 5 that would take us 4400.

However, if they fail to bounce and break through 4080 we could see a direct drop to 3950-4020

NASDAQ Analysis

NASDAQ analysis is telling us that they have broken down to the .382 retrace which is a common wave 4 target. However we have several paths here as well and they will look similar. We have the 4,5 to 12720, the B wave up to 13425 area and wave 5 up to 14000

However, if they break directly below 12815 then it starts to look like we are in the bigger pullback toward 12200.