NASDAQ and SP500 technical analysis for today February 7th using Elliott Wave Theory- The NASDAQ and SP500 both rallied on Friday before selling off at the close. The sell off gives us the start to a strong move down in both indexes. For the SP500 if they break the low at 4438 it should cause downside momentum to take hold and give us a potential fall to 4100-4150 ES.

For the NASDAQ they also have a downside setup targeting the 13250 region to close out it’s bigger wave4. If they can’t follow through to the downside we would be looking for a strong rally to take out Friday’s high to potentially set up a leading diagonal in Elliott Wave Theory.

SP500 technical analysis using Elliott Wave Theory is also telling us that if the bears can’t break 4438 and the bulls take out 4550 ES it is a warning of a bigger move up and that the bottom for wave 4 may be in place.