As of 8 PM PT Sunday evening, futures on the NASDAQ Composite Index are down modestly by roughly 17 points, but the broader technical structure remains firmly bullish following one of the strongest momentum advances of the year. After an explosive breakout phase that already exceeded several major Elliott Wave extension targets, the NASDAQ continues to behave like a market locked inside a powerful third-wave expansion cycle.

The recent action over the past several sessions has only strengthened that argument.

Thursday’s decline initially looked concerning to short-term traders after the index experienced a semi-deep retracement following the prior vertical advance. However, instead of confirming weakness, Friday’s gap-up open completely swallowed the entire pullback almost immediately. That type of price behavior is often seen during aggressive Wave 3 environments where buyers refuse to allow meaningful downside follow-through.

Momentum remains extremely strong underneath the surface.

The NASDAQ has already blasted through the major “Wave 1 equals Wave 5” projection near 25,550, a level many technicians expected to provide at least temporary resistance. Instead of rejecting from that area, buyers accelerated through it, signaling that the market may still be in the earlier innings of a much larger impulsive advance.

Using the current Elliott Wave structure, the next major target now becomes the .618 extension calculation of Wave 1 added to Wave 3, which projects toward the 26,700+ region.

26700

If the NASDAQ can decisively clear 26,700, the larger 1.618 extension target in Wave 3 expands dramatically toward 30,388.

30388

That may sound extreme to traders still anchored to older valuations or prior market cycles, but historically, third waves are designed to shock participants with both speed and magnitude. They are typically the strongest and longest portion of an Elliott Wave impulse sequence because that is when institutional participation broadens and public momentum starts feeding into itself.

What makes this setup especially notable is how shallow every meaningful retracement continues to become. Even the Thursday pullback, which initially appeared significant intraday, was erased almost instantly on Friday’s open. Strong markets rarely offer clean entries because demand consistently overwhelms supply before fear can properly develop.

That behavior is often one of the clearest signs that underlying accumulation remains aggressive.

Technology leadership also continues to support the bullish NASDAQ structure. Mega-cap growth names, semiconductors, AI infrastructure plays, and software leaders remain in strong uptrends with very few signs of major institutional distribution. Markets rarely produce sustainable tops when leadership groups continue printing higher highs simultaneously.

Semiconductor strength in particular remains one of the most important bullish components of the current rally. Historically, the NASDAQ struggles to sustain momentum without chip stocks participating. Instead, the opposite is happening now. Many leading semiconductor names continue exploding into fresh highs while capital rotates aggressively into AI-driven growth themes.

That creates a powerful feedback loop for the broader index.

Another important technical factor is sentiment positioning. Despite the massive advance already seen, many traders continue expecting an imminent collapse due to concerns surrounding valuations, macro uncertainty, interest rates, or geopolitical headlines. Ironically, that skepticism may actually help fuel further upside as underexposed money managers are forced to chase performance higher.

Markets often climb hardest when disbelief remains elevated.

From a pure price structure perspective, the NASDAQ currently resembles a classic runaway trend. Breakouts are holding. Gap-ups are sustaining. Retracements are shallow. Resistance levels are being exceeded faster than expected. Those are all hallmark characteristics of impulsive trending conditions rather than late-stage exhaustion.

The 26,700 level now becomes the key battleground in the near term.

If buyers can clear and sustain above that region, momentum traders may begin targeting the larger 30,388 extension aggressively. Once markets enter accelerated third-wave conditions, moves that previously looked unrealistic can arrive much faster than expected. Elliott Wave history is filled with examples of indices and leading stocks overshooting conservative targets once Wave 3 momentum fully ignites.

Of course, volatility will still exist along the way.

Even in powerful bull trends, sharp pullbacks and headline-driven selloffs are normal. However, until the NASDAQ begins producing lower highs combined with sustained breaks beneath major support levels, the broader structure continues favoring upside continuation over major reversal risk.

Bulls currently control the trend, the momentum, and the psychological positioning.

The mild futures weakness Sunday night does little to change that larger picture unless sellers can generate meaningful downside follow-through during regular trading hours. So far, every dip continues being absorbed rapidly, which remains one of the strongest tells that institutional demand is still active underneath the market.

For now, the NASDAQ appears focused on one thing: pushing toward 26,700 and potentially setting the stage for an even larger Wave 3 acceleration toward 30,388 if momentum continues building in the sessions ahead.