SP500 technical analysis and NASDAQ analysis for today May 18th using Elliott Wave Theory- The bulls continued to push higher and now have given us a few ways to look at the market. However the SP500 and the NASDAQ have less than ideal structures so we need to tread cautiously.

SP500 Technical Analysis

SP500 technical analysis is telling us that the bulls grinded higher and made a potential wave 1 high or completed wave iv. There is an outside shot this can be the start of wave 3 but it’s not my favorite count. For wave one to have completed the bulls would need to hold 3950 and then take out the highs to start wave 3 up. For wave iv bears would break that 3950 level and make new lows toward 3700-3750

However, if they can hold 4007 or higher and rip through the pivot at 4125 we have to start considering wave 3 of 3 in progress.

NASDAQ Analysis

NASDAQ analysis is telling us that the NQ has several possibilities. If they have completed wave 1 they need to hold support over12038 and push higher over the wave 1 highs to start wave 3. If they can’t hold support then we look down toward that 11500 area. However, if they can hold over12288 and push through the pivot at 12810 then we would consider them in wave 3 of 3 on the NASDAQ as well.