The Nasdaq 100 ETF (QQQ) is in the midst of a short-term bullish cycle as per the Elliott Wave analysis.
The current cycle remains active from the April 2025 low. The price needs to surpass the previous high of 638.41, set on 30 October, to confirm continuation.
Wave Sequence Details
The advancing wave sequence from the November 21 low is nearing maturity, consisting of typical five-wave upward impulses. Key levels achieved include wave ((i)) peaking at 586.25 and wave ((iii)) reaching 619.51. A pullback in wave ((iv)) concluded at 612.13, and wave ((v)) is anticipated to finish soon.
Post completion, a correction in wave 2 is expected before further gains. As long as the 580.27 pivot holds, dips should find support within a 3, 7, or 11 wave sequence.
The analysis reinforces future upward prospects for the ETF with support from cycle continuation.
This insight on the Nasdaq 100 ETF is based on the 30-minute Elliott Wave chart as of 5 December 2025.
Related Market Trends
Further related details include market trends in gold prices globally and expectations surrounding various currency pairs. The article also outlines forthcoming changes in US monetary policy and highlights movements in the cryptocurrency market.
Based on the current market structure, we see the strong upward move in the Nasdaq 100 ETF (QQQ) since late November is likely nearing its peak. A short-term pullback should be expected in the coming weeks. This view is supported by the rapid 6.8% gain from the November 21st low, a pace that is difficult to sustain without a pause.
This anticipated dip is not a signal to turn bearish, but rather an opportunity to position for the next move higher. The primary reason for this optimism is the widespread expectation that the Federal Reserve will cut interest rates later this month, a view supported by a weakening US Dollar Index, which is currently hovering near a multi-week low of 99.00. Upcoming Personal Consumption Expenditures (PCE) inflation data will be a critical catalyst and could trigger the expected market correction.
Historically, the start of a Fed easing cycle has been very positive for equities, as we saw with the market rally following the Fed’s pivot to rate cuts back in 2019. The latest economic data, including the November jobs report which showed payrolls growth slowing to 160,000, reinforces the case for the Fed to act. Therefore, any market weakness is likely to be met with strong buying interest.
For derivative traders, this means preparing to take advantage of the expected dip rather than chasing the current highs. We should look to buy call options or sell put spreads on QQQ if it pulls back towards the low 600s. The key is to see any drop as temporary, as long as the price remains above the critical November low of 580.27.
