SP500 technical analysis and NASDAQ analysis for today October 5th using Elliott Wave Theory- The bulls stayed overnight and now they have put the bears on notice. Is it time for a new bull or is this a bear market rally?

SP500 Technical Analysis

SP500 technical analysis is telling us that the bulls charged ahead on Tuesday taking us through the 3777 key level and making things a little uncomfortable for the bears. The bulls need a wave 4 pullback to the 3700-3725 region then a wave 5 over Tuesday’s high. IF they can do that things can start to look bullish. The bears still have a potential for a direct move lower but that window is closing quickly.

However, if they push higher without getting a 4,5 setup we could see a bigger ABC up toward 4200+

NASDAQ Analysis

NASDAQ analysis is telling us that the bulls continued their charge and are looking for a 4,5 setup to give us 5 up off of the lows. From there we would want to see a pullback hold support and take out the wave 1 high which would be a strong indication that the bottom is in.

However, the bears do have a potential to take this directly lower if they can break support