SP500 technical analysis and NASDAQ analysis for today January 26th using Elliott Wave Theory- The market gapped down and held support and rocketed higher giving us an indication we are starting 3 of 3

SP500 Technical Analysis

SP500 technical analysis is telling us that the SP500 fell down into our wave 2 support area and held before we saw a strong reversal and hammer candle on the daily candle setting us up for the wave iii of 3 breakout. We are looking for a break over 4090 to indicate a move to the 4207 area.

However, they breakdown we would look for a bigger C wave toward the 3940 area.

NASDAQ Analysis

NASDAQ analysis is telling us that the NASDAQ also gapped down and held support and shot higher. Now we are looking for a break over 12083 to indicate a move 12560 in a direct fashion. However it’s also possible if they break down and we see a C wave down to the 11500 area.