SP500 technical analysis and NASDAQ analysis for today October 7th using Elliott Wave Theory- The market starts a corrective pullback in a potential wave 2. Is it time to feel bullish?

SP500 Technical Analysis

SP500 technical analysis is telling us that the market chopped lower in a corrective path which is a good sign for the bulls. Corrective waves tend to not have the structure needed to take out a low and this means we should be able to hold support. In that case we would look for a complete 5 waves off of the low to give us a strong indication that a major bottom is in. If we only get 3 waves and fail then it’s likely we are in a big ABC that would target the 4200+ area.

However, if they can’t hold support we are looking at 3250-3450 to complete wave 5.

NASDAQ Analysis

NASDAQ analysis is telling us that the the market gave us a corrective pullback and we would now look to hold support and move higher. If they can create a full 5 up off the lows we can be confident in a major bottom. If we only get 3 waves up we will likely see an ABC that points higher before crashing back down.

However, if they can’t hold support then we are looking at the 10400-10100 levels lower.