Since peaking on October 30, 2025, the Nasdaq (NQ) has remained in a sideways consolidation, a pattern that appears poised to resolve lower. The decline from that high marked the completion of wave (W) at 23,994.5. Subsequently, a corrective rally unfolded, ending wave (X) at 26,349, after which the Index turned down again into wave (Y). The internal structure of wave (Y) is developing as a double three Elliott Wave formation, underscoring the complexity of the ongoing correction.
From the termination of wave (X), the market produced a decline that completed wave W at 24,000. Following this, wave X began to unfold as a zigzag Elliott Wave structure. Within this sequence, wave ((a)) advanced to 25,217.5 before a pullback commenced in wave ((b)). This retracement is currently in progress and serves to correct the cycle that began from the March 9, 2026 low. Once this correction is complete, the expectation is for the Index to resume higher in wave ((c)) of X.
In the near term, as long as the pivot at 23,994.8 remains intact, the Index retains the potential to turn upward in wave ((c)). Such a move would complete the corrective rally in wave X before the broader downtrend resumes. The overall structure suggests that while short-term strength may emerge, the larger corrective sequence is not yet finished, and the eventual resolution is likely to favor the downside.
Nasdaq 60-minute Elliott Wave chart
NQ Elliott Wave [Video]
Source: https://www.fxstreet.com/news/nasdaq-consolidation-likely-to-break-lower-video-202603120406
