Elliott Wave analysis: SP500, NASDAQ 100, Apple, Tesla and major markets [Video]

by · FXStreet

Elliott Wave analysis and trading strategies for top markets in early 2025

In the dynamic landscape of financial markets, utilizing Elliott Wave principles and comprehensive technical analysis is essential for developing effective trading strategies. This week, our focus encompasses major indices and leading stocks, including the S&P 500 (SPX), NASDAQ 100 (NDX), Apple (AAPL), Tesla (TSLA), Amazon (AMZN), Nvidia (NVDA), Microsoft (MSFT), Meta Platforms (META), Netflix (NFLX), Alphabet (GOOGL), and Bitcoin (BTC).

Current Elliott Wave assessment

Our analysis indicates that the Elliott Wave four correction is nearing its completion, entering the final Wave C leg. This downward movement is anticipated to impact both stocks and indices. However, despite the bearish trend, we believe we are approaching the final main leg of this correction phase. Traders can still capitalize on potential gains throughout the remainder of this week before the market fully transitions.

Market-specific insights

Each of the covered markets is currently positioned within specific Elliott Wave counts, providing a clear framework for technical analysis and trading strategies:

  • S&P 500 (SPX): Wave 4
    Experiencing a Wave 4 correction, the SPX is navigating through consolidation, presenting strategic entry points for traders.
  • NASDAQ 100 (NDX): Wave 4
    Similar to the SPX, the NDX is in Wave 4, reflecting volatility and opportunities for tactical trades based on wave patterns.
  • Apple (AAPL): Wave 4
    AAPL is currently in Wave 4, awaiting its earnings report, which is scheduled for late January. Technical indicators suggest potential upward movement post-earnings.
  • Tesla (TSLA): Wave 4
    TSLA is undergoing a Wave 4 correction, making it a candidate for short-term trading strategies focused on wave completion.
  • Amazon (AMZN): Wave 4
    AMZN is in Wave 4, with upcoming earnings in early February likely to influence its wave progression and trading opportunities.
  • Nvidia (NVDA): Wave 3
    NVDA is in Wave 3, indicating a strong upward trend that traders can leverage for momentum-based strategies.
  • Microsoft (MSFT): Wave 4
    MSFT is navigating through Wave 4, with technical analysis suggesting potential consolidation before the next wave movement.
  • Meta Platforms (META): Wave 4
    META is in Wave 4, positioning it for strategic trades as it approaches the final leg of its correction phase.
  • Netflix (NFLX): Wave 4
    NFLX is undergoing Wave 4, with technical indicators pointing towards possible stabilization ahead of earnings.
  • Alphabet (GOOGL): Wave 4
    GOOGL is in Wave 4, setting the stage for potential breakout or breakdown based on upcoming fundamental performance.
  • Bitcoin (BTC): Wave 4
    Bitcoin is in Wave 4, showing resilience amidst broader market fluctuations, making it a valuable component of diversified trading strategies.

Trading strategies and position management

Currently, our strategy involves maintaining short positions in select stocks within the covered markets. We plan to hold these positions through the anticipated volatility, leveraging technical analysis to manage risk and maximize returns. As earnings season approaches, late January and early February will be critical for reassessing these positions based on fundamental performance indicators.

For markets in Wave 4 (SPX, NDX, AAPL, TSLA, AMZN, META, NFLX, GOOGL, MSFT, BTC), traders should monitor for potential Wave C completions, adjusting their strategies to either capitalize on short-term declines or prepare for the onset of the next major wave. In the case of NVDA, currently in Wave 3, momentum-based strategies can be effective to exploit the ongoing upward trend.

Conclusion

Employing Elliott Wave theory alongside robust technical analysis provides a strategic advantage in navigating the current market corrections. By focusing on key markets like the S&P 500, NASDAQ 100, major tech stocks, and Bitcoin, traders can develop informed trading strategies to capitalize on emerging opportunities. Stay tuned for our detailed earnings analysis in the coming weeks to refine your investment approach further.

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