The Nasdaq-100 ETF (QQQ) appears to have ended its correction against the April cycle. The current resurgence stems from the blue box, where we recommended members to go long. In this blog post, we will analyze the structures, the blue box, and what to expect next.
Indices began to sharply rebound last week after correcting the April cycle for over two months. We believe the April bullish cycle for most indices ended in January/February 2026. As for QQQ, the pullback against the April cycle began in late October 2025. We confirmed the peak to our members and recommended selling. We anticipated the correction against the April low to occur in a 3, 7, or 11-wave corrective sequence. We looked to buy at the extreme of any of these correction stages, as long as it wasn’t too shallow – below a 23.6% retracement. The length of the correction confirmed that we weren’t dealing with a 4th wave of the April cycle, but rather a complete correction. Therefore, we considered a 38.2% retracement and deeper as an additional guideline.
QQQ Elliott Wave Bullish Setup – 22nd March, 2026
On March 22nd, we shared the QQQ Daily chart with Elliottwave-Forecast members. The chart revealed the pullback as a 7-swing structure, as a 3-swing structure was considered too shallow. The 7-swing pullback extended to the blue box, where we recommended members to go long on the stock ETF. The blue box covers the 580.13-345.14 area, and we anticipated the low to be within this zone. Therefore, we didn’t need to pinpoint the exact low. Consequently, members went long at 580 with a stop at 545. We provided members with subsequent daily charts displaying this blue box for several days, giving them ample time to decide and set their pending orders.
QQQ Elliott Wave Bullish Setup (Update) – 12th April, 2026
On April 12, 2026, we alerted members with the daily update chart above. The chart shows the price triggered the blue box and reacted sharply upwards. At the time of writing, the ETF was trading at $620. Given the strength of this rally, there is a 70% probability of a new high. Thereafter, buyers will likely look for entry points from the blue box again. However, until that high is breached, we cannot completely rule out the possibility of a 15-swing pullback extending deeper (30% chance). As for us and our members, we have already booked profits on half of our position and left the remainder with an adjusted stop to ensure a risk-free trade.
Source: https://elliottwave-forecast.com/stock-market/qqq-ended-correction-from-blue-box/