Shares of Sandisk may have completed a textbook Elliott Wave zigzag correction after yesterday’s precise touch of the Wave C equality target near 1275, followed by what now appears to be a strong reversal attempt. Traders closely monitoring the semiconductor sector are increasingly focused on the possibility that SNDK formed a major technical bottom through an ending diagonal exhaustion pattern at the exact moment Fibonacci symmetry completed.
The corrective structure began with Wave A declining sharply from 1600 down to 1362, producing a steep 238-point selloff that broke bullish momentum and triggered heavy profit-taking across high-beta semiconductor and AI-related technology names. The decline reflected growing volatility throughout the broader technology sector as traders began reducing exposure after an extended rally fueled by artificial intelligence optimism.
Following the initial selloff, SNDK rebounded from 1362 back to approximately 1513, forming what many Elliott Wave analysts interpreted as a classic Wave B countertrend rally. In Elliott Wave theory, Wave B rallies frequently restore temporary bullish confidence before the final Wave C decline unfolds. These rebounds can often become deceptively convincing because they lead many traders to believe the correction has already ended.
Using traditional Elliott Wave symmetry analysis, traders then projected a likely Wave C termination target 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 generated a precise downside projection near 1275.
1513 - 238 = 1275
Many analysts also identified a broader Fibonacci support region between 1282 and 1292 due to overlapping retracement levels and prior support zones. What makes yesterday’s trading action especially significant, however, is that SNDK reached an intraday low of exactly 1275 before reversing higher. That perfect alignment with the projected Wave A equals Wave C target has dramatically increased speculation that the correction may have fully completed.
Adding further technical importance to the setup is the reported ending diagonal structure forming during the fifth wave of the C wave decline. Ending diagonals are among the most powerful exhaustion patterns in Elliott Wave analysis because they frequently appear at major turning points where downside momentum begins collapsing even while price continues making marginally lower lows.
An ending diagonal typically develops as fear peaks and sellers become increasingly exhausted. The structure often features overlapping waves, weakening momentum, narrowing price action, and strong divergences on momentum indicators. Those characteristics reflect deteriorating bearish strength and often signal that the market is nearing a reversal point.
Yesterday’s exact touch of 1275 combined with a developing ending diagonal created a highly compelling cluster of technical confluence. Traders analyzing the setup identified several major signals aligning simultaneously:
Wave C achieved precise equality with Wave A
Fibonacci support aligned perfectly at 1275
The broader ABC zigzag correction appeared complete
A potential ending diagonal exhaustion structure formed
Emotional selling pressure intensified into the low
That combination significantly increased the probability that the decline was approaching exhaustion.
Today’s trading action may now be providing the first signs of confirmation. Shares are reportedly up roughly 10 points following yesterday’s reversal low, suggesting buyers may finally be stepping aggressively back into the stock after the capitulation phase completed. In Elliott Wave analysis, strong rebounds immediately following completed ending diagonals often represent the beginning of powerful reversal phases as short sellers cover positions and sidelined buyers return.
The semiconductor sector itself remains one of the market’s most important long-term growth areas. Companies connected to AI infrastructure, cloud computing, memory systems, and advanced storage technologies continue benefiting from rising global demand for data processing capacity. Despite recent volatility, many investors still believe the broader secular growth trend remains intact.
Because of that long-term backdrop, many traders view the recent correction in SNDK as potentially a Wave 4 reset within a larger bullish structure rather than the beginning of a sustained bear market. If the ending diagonal interpretation proves correct, the stock could now begin transitioning into a new impulsive advance higher.
Technically, traders will now watch several important confirmation signals over the coming sessions. Strong upside follow-through, expanding volume, improving relative strength, and reclaimed resistance levels would all strengthen confidence that yesterday marked a durable bottom. Momentum divergences on daily and intraday charts may also become increasingly important if indicators continue improving while price stabilizes above support.
At the same time, broader market conditions remain critical. Semiconductor stocks continue reacting heavily to NASDAQ volatility, Treasury yields, and Federal Reserve expectations. If broader technology indices weaken aggressively again, even strong-looking reversal setups can temporarily retrace before fully developing.
Still, the current structure in SNDK resembles one of the cleaner Elliott Wave reversal setups traders have seen recently. The stock reached the exact Fibonacci equality target, formed a possible ending diagonal during the final decline, and immediately began rebounding afterward. Those conditions frequently appear near important market bottoms rather than the beginning of new downside trends.
For now, traders are closely watching whether yesterday’s 1275 low holds as the final capitulation point. If buyers continue defending the reversal and upside momentum builds, SNDK may have completed a near-perfect zigzag bottom — potentially setting the stage for a much larger recovery rally across the semiconductor sector.