SP500 technical analysis and NASDAQ analysis for today May 5th using Elliott Wave Theory- The market exploded higher on the bad news of the FED. Another feather in the cap for Elliott Wave Theory as the news cycles don’t move the market. We were ready and cashed in with big winners in both rooms.

SP500 Technical Analysis

SP500 technical analysis is telling us that it’s pretty simple for the bulls. Hold the 50% fib or higher from the top and make a new high and the bulls are in control. Break back below the 50% fib and the bears can take control and push us lower.

NASDAQ Analysis

NASDAQ analysis is telling us that the NQ also needs to hold the 50% fib on a pullback and make a new high. Do this and the bulls are in full control otherwise the bears can quickly shoot this down to new lows.