SP500 technical analysis and NASDAQ analysis for today July 13th using Elliott Wave Theory- The market gave us the bounce into our resistance area then sold off into the close. We now have an immediate downside setup if the bears want to follow through.

SP500 Technical Analysis

SP500 technical analysis is telling us that with the selloff today after the bounce we could be starting a wave 3 of 3 down that would target the 3716-3666 area. But it needs to break the pivot at 3765 if it’s going to do so. Once it breaks the pivot we have a strong indication that the move down is underway.

However, if the market can hold above the 3765 region and rally toward 4k directly then it looks like a diagonal higher in a more direct manner.

NASDAQ Analysis

NASDAQ analysis is telling us that with the continued selling we target the b wave at 11250. If the market can’t hold that level then we are looking at a move down to the 10500-600 area to extend wave A

However if they can hold higher support and rally over last weeks high it becomes much more likely we are looking at a diagonal higher toward 12550