US100: Wave 2 Done, Five-Wave Rally Toward 30,500

Nasdaq is pushing higher again. Wave 2 correction into the (c) leg looks complete on the 4h chart, and the structure now points to a fresh five wave advance.

This isn't a guess based on one green candle. The prior decline into wave 2 traced a corrective (a)-(b)-(c) sequence, complete with a contracting triangle in wave (b). That triangle is a classic sign of a corrective pattern running out of steam, not a fresh leg down building momentum. Once price broke out of it, the case for a new impulse higher got stronger.

Where does US100 wave (3) target?

Wave (3) targets the 30,000-30,100 zone. That's the next leg up in the new five wave sequence, following wave (1) off the recent low.

Impulse waves rarely move in a straight line, and wave (3) is usually the strongest, most extended leg in the sequence. The chart shows this as a clean push from wave (2) up toward that 30,000-30,100 area, with the 2.618 Fibonacci extension marked right in that zone.

Why does US100 need a wave (4) pullback?

Wave (4) pulls back to reset before the final leg. Why even draw a pullback on a bullish chart? Because five wave moves don't go in a straight line.

Wave (4) isn't weakness. It's the pause that sets up the last push. Traders who panic-sell every dip inside an impulse end up chasing the top instead of riding it. The chart marks the wave (4) low near the 2.0 Fibonacci level, right below the wave (3) high, which is exactly where a fourth wave should sit without overlapping wave (1) territory.

What happens after US100 wave (5) hits 30,500?

Wave (5) then extends toward 30,500, completing the five wave impulse that began after wave 2 bottomed. This is labeled wave 1 of the next higher degree on the chart, meaning it's just the first leg of something bigger.

Once this five wave sequence wraps up near 30,500, expect a bigger correction to follow. That's wave 2 of one degree higher, shown on the chart curving back down toward the 29,600-29,700 area. A correction at that stage doesn't kill the trend. It resets it, the same way the current wave 2 did before this rally started.

Final word

Save this chart and follow the next update. The structure is doing the talking here, not us. US100 is tracing a textbook impulse-correction rhythm, and each piece, wave (3), wave (4), wave (5), and the correction that follows, has a specific job to do inside that rhythm.