SP500 technical analysis and NASDAQ analysis for today July 7th using Elliott Wave Theory- The market sells off then rebounds. Are we still buying the dip?

SP500 Technical Analysis

SP500 Technical analysis is telling us that after the selling the market gave a bounce. We do have a few possibilities here. As long as we are below 4418 SPX we do have a valid 4th wave and would look for a 5th wave lower. If they do I would look for a minimum drop toward the 4260 area. From there we would look for a bounce that would tell the story.

However, if they push directly over the 4418 area it’s more likely they are trying to complete an ending diagonal.

NASDAQ Analysis

NASDAQ analysis is telling us that the NASDAQ sold off as well then bounced in a potential wave 4 then we look for a wave 5 down to confirm that count and look for a bounce that will tell the story. Corrective and we look much lower, impulsive and we likely challenge ATHs.

However, a move over the 15250 area would point us to a potential ending diagonal toward the 15600-700 area.