SP500 technical analysis and NASDAQ analysis for today January 20th using Elliott Wave Theory- The market dropped into our support box and is trying to bounce. Or is it a rally?

SP500 Technical Analysis

SP500 technical analysis is telling us that the SP500 fell down into support and started to bounce. We have a micro 5 wave count on positive divergence so we need to keep an eye on the potential that the low is in and we are starting the rally in wave 3 of C. If that’s the case we would need to hold around 3911 and rally up to around 3960 as a strong indication of this. It is possible we need another low on positive divergence in our support area before we bounce.

However, if they can’t hold support we would likely be looking at the 3600 area in a wave C before seeing a bounce.

NASDAQ Analysis

NASDAQ analysis is telling us that the NASDAQ also continued it’s pullback and started to bounce. We have a 5 wave bounce on positive divergence so we need to pay attention to that and see if the bulls are ready or if we need to drop further into the 11000-11100 region.

However a break of the 11000 support area would point us down in the C wave to 10000