Nasdaq: Wave A Done – Now Lining Up for a Strong Bounce

The Nasdaq is starting to look really interesting here. In my view, we've completed Wave ((a)) to the downside—a clean (abc) correction. Why do I think it's done? Because we've just tapped into a Fair Value Gap (FVG) and saw a strong reaction, just above last year’s VWAP, which I always consider a key reference point on the higher time frame.

Ideally, I would have liked to see that 19,090 level get tagged—unfortunately, we didn’t quite reach it. But honestly, this reaction is solid enough to still keep the bullish scenario intact.

Adding to that, the RSI is now in oversold territory, and the last two times we’ve seen that, it was followed by strong upward moves. Based on all of this, I’m expecting a solid bounce over the coming weeks, likely lasting into Q1 or even Q2 2025.

Where could this move take us? I see two key zones: the first between 22,000 and 22,425 and the second between 23,320 and 23,675. Could it land somewhere in between? Sure. But one of those zones is where I expect this corrective structure to wrap up. That would likely complete the larger ((abc)) correction, after which we’ll finally begin forming the macro Wave A—which will open the next big leg of structure.

So the bigger picture is in play here. In the meantime, I’ll be hunting for entries on the lower time frames, because I do think we’re setting up for a pretty solid push on this index in the coming weeks.