SP500 technical analysis and NASDAQ analysis for today October 14th using Elliott Wave Theory- The market dropped heavily on CPI data before a huge rally took them well into the green on heavy volume buying.

SP500 Technical Analysis

SP500 technical analysis is telling us that the market moved 140 points lower on CPI data before finding a bottom at the .50 retrace from the ATH’s to the COVID lows and ripped 180 points higher into the close. We now have bottoming signals on the weekly chart and a strong reversal candle that is telling us we may be in the ABC rally toward 4200+

However, if they can’t break out, we can see one more push lower to the 3250-3450 area.

NASDAQ Analysis

NASDAQ analysis is telling us that the NASDAQ and SP500 have synced their lows and also rallied hard off of support and big volume. We believe that this is the start of the ABC path toward 13600+ to test the Aug highs.

However if they can’t break out we will see a drop to the 9500-10000 area.