The Nasdaq (NQ) is projected to reach a new all-time high, targeting at least 26,793. This upward trend began from the April 2025 low and is forming an impulsive Elliott Wave structure. During this rise, wave (3) ended at 26,399, leading to a corrective wave (4) structured as a double three.
Following the peak of wave (3), wave ((a)) decreased to 25,853, with wave ((b)) rebounding to 26,274. Wave ((c)) then declined to 25,282, completing wave W of a higher degree. A rally in wave X peaked at 25,880, before moving into wave Y, structured as a zigzag.
Wave Y and Nasdaq Resumption
Within wave Y, wave ((a)) declined to 25,162, followed by a wave ((b)) bounce to 25,354.75. Wave ((c)) then fell to 24,707.1, marking the completion of wave Y of (4). The Nasdaq resumed its upward movement in wave (5) from this low. Moving from wave (4), wave ((i)) achieved 25,768.75, and wave ((ii)) found support at 25,478.50. With the pivot at 24,707.1 intact, further upward movement in wave (5) is anticipated.
Based on the current Elliott Wave structure, we see the Nasdaq having completed a necessary correction and now beginning its next major leg higher. The key is that the index has started wave (5) from the 24,707.1 low, suggesting the immediate path of least resistance is upward. Traders should view recent pullbacks, like the one to 25,478.50, as buying opportunities for a move toward new all-time highs.
This technical outlook is bolstered by favorable economic data that has emerged in late October and early November of 2025. For instance, the latest CPI report showed core inflation dipping to 2.8% year-over-year, below expectations and marking the lowest print since mid-2022. This reinforces the market’s belief that the Federal Reserve will maintain its current policy stance without further tightening.
Positioning for Upside
Furthermore, the third-quarter 2025 earnings season, which recently concluded, saw over 80% of Nasdaq 100 companies beat profit forecasts, with particularly strong guidance from the semiconductor and software sectors. The jobs report from two weeks ago also presented a “goldilocks” scenario, with solid job creation but moderating wage growth, easing concerns of an overheating economy. Historically, such a combination of cooling inflation and solid earnings has fueled strong year-end rallies, similar to what we observed in the fourth quarter of 2023.
Given this, traders should consider positioning for upside in the coming weeks. One straightforward approach is buying at-the-money or slightly out-of-the-money call options on Nasdaq futures (NQ) or related ETFs with expirations in late December 2025 or January 2026. This strategy provides direct exposure to the anticipated rally towards the 26,793 target.
For a more risk-defined trade, we could implement bull call spreads. For example, buying the December 25,800 call and simultaneously selling the December 26,400 call would capture the initial part of the expected move while capping both the potential profit and the upfront cost. This approach benefits from the upward momentum while limiting risk if the rally stalls before reaching new highs.
The most critical element for any bullish position is the pivot level at 24,707.1. A break below this price would invalidate the entire impulsive wave count and signal that a deeper, more complex correction is underway. Therefore, all long derivative strategies should use a sustained move below this level as a clear signal to exit the trade.
