SP500 technical analysis and NASDAQ analysis for today August 26th using Elliott Wave Theory- The market followed through on it’s bounce. Now the question is are we just bouncing or setting up for the next move higher?

SP500 Technical Analysis

SP500 technical analysis is telling us that the market Is in the middle of an ABC rally targeting 4225. Once we reach that region we should look for a reaction from the market. If they pullback strongly and break support we are likely in C down toward 4000. If they hold support and take out 4225 then we look like we could be in 5 up.

However, if they break down directly from 4200 we would have would look at 4080 as the bottom of A/4

NASDAQ Analysis

NASDAQ analysis is telling us that they bounced in an ABC structure targeting the 13219-13306 area for a b wave bounce. From there we would look for them to either break down strongly in a C wave or pullback and hold support and take out the wave b high in a potential move to 14000 in wave 5.

However, if they break down directly we could see the 12750 region in a/4