SP500 technical analysis and NASDAQ analysis for today January 24th using Elliott Wave Theory- The market shot higher into our target area before staring to sell off at the end of the day. Are the bulls ready to run?

SP500 Technical Analysis

SP500 technical analysis is telling us that the SP500 rallied again Monday toward our wave i of 3 target area. From there it started to pullback but hasn’t broken down just yet. We would like to see a pullback toward the 3973-3929 area on the futures to give us a solid wave ii of 3 before we see the bulls breakout higher. However, they can push directly higher and a break of 4090 directly would be a cautious move higher that could already be in wave iii of 3

NASDAQ Analysis

NASDAQ analysis is telling us that the NASDAQ also rallied toward it’s i of 3 target and is now in an area where we would expect a pullback. If so we would look to hold the 11643-11463 area for support before really breaking out higher in iii of 3. However it’s also possible based on how shallow the pullback was in 2 that we are just topping in wave 1 here and still need a wave 2 pullback.