SP500 technical analysis and NASDAQ analysis for today December 12th using Elliott Wave Theory- The market gave us a fake gap up on the futures contract roll. We have to adjust to this and understand this wasn’t a bullish move. So are we still tracking a wave 4?

SP500 Technical Analysis

SP500 technical analysis is telling us that the cash market is still well within wave 4 territory on it’s high and is looking to break the wave 3 low on it’s way down to 3880 for wave5. Assuming they can break the Friday low that would be the expected path on the SP500.

However, if they are able to hold Friday’s low and take out Friday’s high we would be looking at a B wave up toward 4k before we see the drop to 3700-3800

NASDAQ Analysis

NASDAQ analysis is telling us that the NASDAQ also gave us a fake gap up on it’s contract roll. This means we have to adjust each NQ price by about 130pts lower to see if it hits our targets. If we can break below Friday’s low we would look for a move down toward the 11300 area.

However if they hold the Friday low and take out the Friday high then we could see a move to 12000 first.