SP500 technical analysis and NASDAQ analysis for today May 16th using Elliott Wave Theory- The bulls rallied hard on Friday and now face a big test. Can they hold support and take back control of the market?

SP500 Technical Analysis

SP500 technical analysis is telling us that the bulls grinded higher in the cash market to get their 5th wave up. Once they did they consolidated sideways in what looks like a very corrective structure. As long as they can hold support above 3900 then take out 4070 in an impulsive fashion it’s a strong indicator for the bulls.

However, if they can’t hold the 3900 area then it’s very likely we are looking to make 1 more low in the 3700-3750 region before bottoming.

NASDAQ Analysis

NASDAQ analysis is telling us that the NQ has to hold support off of the high above 11882 and take out 12498.75 then 12550. If they can do that the bulls can be on their way in the next rally to ATH’s. If they fail to hold support we look toward 11500.