The Nasdaq (NQ) is expected to hit a new all-time high, aiming for at least 26,793. This upward trend started from the low in April 2025 and follows an impulsive Elliott Wave pattern. During this rise, wave (3) peaked at 26,399, followed by a corrective wave (4) that formed a double three structure. After wave (3) reached its peak, wave ((a)) dropped to 25,853, then wave ((b)) rebounded to 26,274. Finally, wave ((c)) fell to 25,282, completing wave W of a higher degree. Wave X rallied to 25,880 before transitioning into wave Y, which took on a zigzag shape.

Wave Y and Nasdaq Resumption

In wave Y, wave ((a)) dropped to 25,162, then wave ((b)) bounced back to 25,354.75. Wave ((c)) fell to 24,707.1, finishing wave Y of (4). After this low, the Nasdaq began its upward movement in wave (5). Wave ((i)) reached 25,768.75, while wave ((ii)) found support at 25,478.50. As long as the pivot at 24,707.1 holds, we can expect further upward movement in wave (5). The current Elliott Wave structure indicates that the Nasdaq has completed an important correction and is ready to start a major upward movement. The index has begun wave (5) from the low of 24,707.1, suggesting that the immediate trend is upward. Traders should see recent pullbacks, like the drop to 25,478.50, as chances to buy while aiming for new all-time highs. This positive outlook is supported by strong economic data released in late October and early November 2025. For example, the recent CPI report showed core inflation fall to 2.8% year-over-year, which is lower than expected and is the lowest level since mid-2022. This supports the market’s belief that the Federal Reserve will keep its current policies without making further changes.

Positioning for Upside

In addition, the third-quarter 2025 earnings season showed that over 80% of Nasdaq 100 companies exceeded profit expectations, particularly in the semiconductor and software sectors. The jobs report from two weeks ago also suggested a “goldilocks” scenario, featuring solid job growth and slowing wage growth, reducing fears of an overheated economy. Historically, this mix of easing inflation and strong earnings has led to significant year-end rallies, similar to what we saw in the fourth quarter of 2023. Given this backdrop, traders might want to prepare for gains in the upcoming weeks. A simple strategy is to buy at-the-money or slightly out-of-the-money call options on Nasdaq futures (NQ) or related ETFs that expire in late December 2025 or January 2026. This approach offers direct exposure to the projected rally toward the 26,793 target. For those looking for a more defined risk, bull call spreads could be an option. For instance, buying the December 25,800 call while simultaneously selling the December 26,400 call can capture the initial gains from the expected move while limiting potential profit and upfront costs. This strategy allows traders to benefit from upward momentum while reducing risk if the rally slows down before reaching new highs. The most vital factor for any bullish position is the pivot level at 24,707.1. If the price falls below this level, it would challenge the entire wave count and indicate a more complicated correction is starting. Therefore, all long positions should be adjusted or exited if the price consistently drops below this level. Create your live VT Markets account and start trading now.

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