SP500 technical analysis and NASDAQ analysis for today January 4th using Elliott Wave Theory- The market gave us a fakeout breakout and then the bears took it down.

SP500 Technical Analysis

SP500 technical analysis is telling us that the SP500 tried to breakout over 3900 but was unable to break through resistance. From there the bears gave us a push down that broke the 3820 support area nad looks to be a 5 down for a wave 1 of v pointing toward 3750-20

However, the bulls do have a possible path higher in the form of a diagonal but we shouldn’t seriously consider it until they break 3885

NASDAQ Analysis

NASDAQ analysis is telling us that the NASDAQ was unable to break through resistance leading to a failure for the bulls and a break of support. Now we are looking for a move down in wave v that should point us to the 10600 region. However a break above yesterday’s high and we could see the diagonal scenario playing out.