SP500 technical analysis and NASDAQ analysis for today October 3rd using Elliott Wave Theory- The bears broke the ES and NQ lows and sold off hard into the close. Does this open the flood gates lower?

SP500 Technical Analysis

SP500 technical analysis is telling us the bears broke the lows and the 3600 level and we now have a setup for a small bounce and another selloff down toward the 3485-3550 area for a bottom where we would look for some kind of reversal whether it be an ABC up toward 4200 or an impulsive moves to new all time highs. We will take it level by level and go from there.

However, if they break directly below 3450 we could be forced to bring back the blue count we took out last week that would take us toward 3250.

NASDAQ Analysis

NASDAQ analysis is telling us that the market caught up with the ES and broke it’s June low. It sold off from there and we now have a setup to bounce up in 4 then selloff down toward the 10189-435 area where we would look for a strong reversal from the bulls.

However, if they push directly below 10189 then we would be looking at the 9000-9500 area next.