SP500 technical analysis and NASDAQ analysis for today May 10th using Elliott Wave Theory- The market took a nosedive and dropped a little over 3%. It has fallen a bit more after hours but found a bounce and is now trying to build an impulsive rally higher.

SP500 Technical Analysis

SP500 technical analysis is telling us that it’s pretty simple for the bulls. Take this bounce and turn it into an impulsive rally higher. If we can get an impulsive move over 4070 that would be a strong indication of a reversal and a move higher has begun.

However, if they fail to rally and can’t hold 3930 then that should be a warning that we may be seeing 3750 before we finally bottom.

NASDAQ Analysis

NASDAQ analysis is telling us that the NQ is looking to build an impulsive rally off of the overnight low and press up over the 12641 area. If we can get that, it is a strong sign for the bulls building an impulsive reversal rally. However if they fail and fall below 12000 then it’s likely we see much lower before we can get a reversal.