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.

Share: Feed news

As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.

Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.

The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.

Recommended content


Recommended content

Editors’ Picks

EUR/USD declines toward 1.0450 on USD recovery

EUR/USD declines toward 1.0450 on USD recovery

EUR/USD struggles to gain traction and declines toward 1.0450 on Tuesday despite the upbeat ZEW Survey - Economic Sentiment data for Germany and the Eurozone. Rising US Treasury bond yields support the US Dollar and weigh on the pair.  

EUR/USD News
GBP/USD struggles to hold above1.2600

GBP/USD struggles to hold above1.2600

GBP/USD stays under modest bearish pressure and trades below 1.2600 on Tuesday. Earlier in the day, the pair edged higher with the initial reaction to the UK labor market data, which showed that the Unemployment Rate held steady at 4.4% in the three months to December.

GBP/USD News
Gold climbs to daily highs near $2,930

Gold climbs to daily highs near $2,930

Gold prices advance to two-day highs around $2,930 per ounce troy amid the resumption of tariff concerns and despite the tepid rebound in the Geenback and an acceptable move higher in US yields across the curve.

Gold News
Why Solana, XRP, Dogecoin and BNB are crashing?

Why Solana, XRP, Dogecoin and BNB are crashing?

Solana (SOL), XRP, Dogecoin (DOGE) and Binance Coin (BNB) decline on Tuesday. Top altcoins ranked by market capitalization are in a downward trend, even though Bitcoin (BTC) continues to consolidate around the $95,000 level. 

Read more
Rates down under

Rates down under

Today all Australian eyes were on the Reserve Bank of Australia, and rates were cut as expected. RBA Michele Bullock said higher interest rates had been working as expected, slowing economic activity and curbing inflation, but warned that Tuesday’s first rate cut since 2020 was not the start of a series of reductions.

Read more
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025