Shares of Sandisk may have just completed one of the cleanest Elliott Wave zigzag corrections in the semiconductor sector after reaching a near-perfect Fibonacci equality target and immediately beginning to stabilize. Traders closely following the recent corrective structure are now focusing on whether today’s intraday low near 1275 marked the exact termination point of Wave C — potentially signaling exhaustion of the entire ABC decline.
The corrective pattern began with Wave A falling sharply from 1600 down to 1362, producing a steep 238-point selloff that broke bullish momentum and triggered aggressive profit-taking across high-beta semiconductor and AI-related technology names. The decline occurred during a broader wave of volatility as investors began reducing exposure to some of the market’s strongest-performing growth stocks.
After reaching 1362, SNDK staged a rebound rally back to approximately 1513, forming what many Elliott Wave analysts identified as a classic Wave B countertrend bounce. In Elliott Wave theory, Wave B rallies frequently restore temporary optimism before the market enters its final Wave C decline. These rallies can often trap late buyers because they create the illusion that the correction has already ended.
Using traditional wave symmetry analysis, traders then projected a potential Wave C termination zone by measuring equality between Wave A and Wave C.
C = A = 238
Applying that same 238-point decline from the Wave B high near 1513 produced a precise downside target near 1275.
1513 - 238 = 1275
Many traders also identified the broader support zone around 1282–1292 due to overlapping Fibonacci retracements and prior support structure. What makes today’s price action especially significant, however, is that SNDK reached an intraday low of exactly 1275 before buyers emerged. That perfect alignment with the Wave A equals Wave C projection has dramatically increased speculation that the correction may now be complete.
Adding even more weight to the bullish interpretation is the developing ending diagonal structure reportedly forming during the fifth wave of the C wave decline. In Elliott Wave analysis, ending diagonals are highly important reversal patterns that frequently appear at exhaustion points near the conclusion of larger corrective or impulsive structures.
An ending diagonal typically reflects weakening downside momentum despite continued lower prices. As the structure develops, waves begin overlapping, momentum indicators diverge, and selling pressure gradually loses strength even while fear intensifies. Those characteristics often signal that sellers are becoming exhausted and that a reversal may be approaching.
If SNDK truly completed an ending diagonal into the exact Fibonacci equality target, the setup becomes particularly compelling from a technical standpoint. Elliott Wave traders often search for clusters of confluence — situations where multiple independent signals align at the same price level. In this case, traders now have:
Wave C equality with Wave A
Exact Fibonacci symmetry at 1275
Completion of a possible ABC zigzag correction
Potential ending diagonal exhaustion structure
Emotional capitulation conditions during the final decline
That combination creates a strong probability zone for a major reversal attempt.
The broader semiconductor sector also remains fundamentally tied to long-term artificial intelligence infrastructure growth, cloud computing expansion, and rising global demand for advanced storage and memory systems. Despite recent volatility, many investors still believe the long-term secular growth story for semiconductor and AI infrastructure companies remains intact.
Because of this, some traders view sharp corrections like the current one as reset phases within larger bullish trends rather than the beginning of entirely new bear markets. In classical Elliott Wave structure, a completed zigzag correction inside a larger uptrend is often followed by another impulsive advance once downside momentum fully exhausts itself.
Still, confirmation remains essential. Elliott Wave projections identify high-probability zones, but price action must ultimately confirm whether a durable bottom has formed. Traders will now closely watch for impulsive upside movement, expanding volume, and reclaimed resistance levels over the coming sessions. Strong upside follow-through would strengthen the argument that the ending diagonal truly marked the final low.
Momentum divergences will also become important. If price begins rising while momentum indicators improve significantly from oversold conditions, confidence in the completed-bottom scenario could increase substantially. Semiconductor leadership across related stocks may also provide important clues. If the broader sector stabilizes while SNDK begins outperforming, traders may interpret the move as evidence of institutional accumulation returning.
At the same time, risks remain if the broader NASDAQ continues weakening aggressively. Semiconductor stocks remain highly sensitive to Treasury yields, Federal Reserve expectations, and overall risk appetite. If macro pressure intensifies further, even ideal Elliott Wave setups can temporarily overshoot before a lasting bottom forms.
Nevertheless, today’s exact touch of 1275 combined with the potential ending diagonal structure represents one of the cleaner technical reversal setups traders have seen in recent weeks. The market reached the precise Wave A equals Wave C target, selling pressure appeared increasingly exhausted, and buyers began responding immediately at a key Fibonacci level.
For Elliott Wave traders, those conditions often appear near the end of corrections rather than the beginning of new downside trends. If the current interpretation proves correct, SNDK may have just completed a near-perfect zigzag bottom — potentially setting the stage for a significant reversal higher once broader semiconductor sentiment stabilizes.