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    A three-wave correction in E-mini Nasdaq-100 futures sparked a rally after an Elliott Wave setup.

    by VT Markets
    /
    Dec 12, 2025
    A recent analysis of E-mini Nasdaq-100 Futures shows a completed three-wave correction, forming an Elliott Wave Double Three pattern, followed by a strong rally. Currently, the Futures are experiencing a three-wave pullback in wave (4) blue, indicating possible further weakness toward the 24145–23097 range, which could present buying opportunities. A bounce is expected from this Blue Box area. Buyers have shown interest at the Blue Box, leading to a bounce. With wave (4) blue finished above 23905, wave (5) may now be developing, aiming for new highs around 26989. The patterns from wave (3) blue are guiding the expected market direction.

    Recent Dip Analysis

    We believe the recent drop in Nasdaq futures was a normal three-wave correction that has now wrapped up. The strong bounce from the 23905 level shows that buyers are back in the market with confidence. This technical strength matches last week’s report, which noted that the November 2025 CPI fell to 2.8%, giving the Federal Reserve a reason to hold steady on rates. For traders in derivatives, this suggests using any small pullbacks to take on bullish positions is the best strategy. We see the market as being in an uptrend as long as it stays above the 23905 low. Selling out-of-the-money put spreads or buying call options could benefit from this anticipated upward movement. The ongoing rally is viewed as a fifth wave targeting the 26989 area soon. This aligns well with seasonal trends, as we frequently see a “Santa Claus Rally” push markets higher toward year-end. A similar late-year strength was seen following a fall consolidation in 2023.

    Positive Economic Outlook

    This optimistic outlook rests on a stable economic environment, not one that is overheating. The November nonfarm payrolls report revealed that the economy added a balanced 185,000 jobs, seen as ideal for maintaining growth without causing inflation. Therefore, we view dips as chances to buy within a larger uptrend. Create your live VT Markets account and start trading now.

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