The article talks about a trading strategy using the Elliott Wave pattern on the Invesco NASDAQ ETF. This ETF went through a three-wave correction that finished with a Double Three pattern, leading to a price increase. The Double Three pattern is known for being reliable, offering clear entry points for trades. It predicted a drop to the 586.28–561.62 range, where buyers stepped in at the Blue Box area, creating a bounce. As long as the ETF stays above the recent low of 580.31, it’s thought that wave (4) of the blue correction has finished. The expectation is that wave (5) will rise to new highs, targeting the 652.32 area. The article also includes unrelated sections like market insights, forecasts, legal details, and tips on the best brokers for trading in 2025. These sections cover various topics, such as the rise in gold prices, the stability of certain currency pairs, and predictions about cryptocurrency trends. Additionally, it includes disclaimers, stressing that the content is for informational purposes and advising readers to research before making financial decisions. Both FXStreet and the author claim no responsibility for the accuracy of the content or any results from its use. The technical outlook for the QQQ ETF shows that the recent pullback has hit its low. Buyers appeared around the 580 level, confirming a classic corrective pattern. This suggests that the easiest path forward is upward, aiming for new highs. This optimistic view is backed by recent economic data. The November PCE inflation report released last week showed a moderate 2.6%, reinforcing expectations of a supportive Federal Reserve. As of now, Fed funds futures indicate an 85% chance of a rate cut by the end of the first quarter of 2026, which is very positive for technology and growth stocks. In the coming weeks, we should aim for a move towards the 652 price target. Using bull call spreads with January or February 2026 expirations is a way to seize this potential upside while keeping risk defined. Another strategy is to sell out-of-the-money puts with strike prices below the recent low of 580 to collect premiums. Market volatility is decreasing as we near the year’s end, with the VIX dropping below 15 for the first time since October. Any bullish positions should use the recent low of 580.31 as a clear invalidation point. Following our strategy, we will adjust stops to breakeven once the initial upward movement is confirmed. This current market setup closely resembles the conditions seen in late 2023 and early 2024. During that time, the market surged due to expectations of Fed easing and excitement over AI-driven growth. The recent decline seems to have been a healthy pause before the next potential rise.

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