SP500 technical analysis and NASDAQ analysis for today January 23rd using Elliott Wave Theory- The market started to rally and now has a setup for a breakout. Is it a fake out?

SP500 Technical Analysis

SP500 technical analysis is telling us that the SP500 rallied hard Friday following our wave i of 3 path higher. It’s now going to come down to the next pullback. If we can hold the next pullback and breakout over the wave 1 high we are likely strongly in the path to 4400.

However, if they can’t hold support we are looking at the 3857 area in a wave c of 2 of C before seeing a bounce.

NASDAQ Analysis

NASDAQ analysis is telling us that the NASDAQ also broke out on Friday and support will be a big test for the bulls. if the bulls can hold support and take out the wave 1 of C high we would expect a strong move toward 12500. However a break of the i of 3 of C support would likely put us in 2 of C toward the 11235 area.