SP500 technical analysis and NASDAQ analysis for today January 18th using Elliott Wave Theory- The market grinds sideways as we await a decision. Can the bears grab back control?

SP500 Technical Analysis

SP500 technical analysis is telling us that the SP500 spiked higher but couldn’t sustain the breakout and sold off from there. We continue to be range bound until the market breaks out of the range. Based on the MACD and EWT count we are expecting a pullback to the 3915-3850 area in wave 2 before seeing a move higher from there.

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 is similar to the ES in that fact that we are looking for a pullback in wave 2. The NASDAQ target is the 11100-11000 zone. Assuming we see that support hold we would look for a bounce from there toward the 13000 region.

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