SP500 technical analysis and NASDAQ analysis for today May 23rd using Elliott Wave Theory- As expected the market sold off to new lows on Friday and then the bulls stepped in and shot the market higher closing in the green. We also made 135% gains on our trade.

SP500 Technical Analysis

SP500 technical analysis is telling us this move up has the start of an impulsive wave but still has work to do. Right now we need to see a pullback hold the pivot above 3884 and make a high over the Sunday high. If the SP500 can do that then hold the pivot again and make a new high we may be on the reversal higher.

However, if the market cannot stay above 3884 then it becomes more likely we go make another low before we can start any rally higher.

NASDAQ Analysis

NASDAQ analysis is telling us that the NQ also needs to hold it’s pivot at 11779. If the bulls can do that and take out the Sunday high they have the start of a bullish structure that could give us our next rally higher. However if they can’t hold 11779 then we look for one more low.