Nasdaq 100 Elliott Wave Weekly Update - Sunday, Nov 1

Technical Analyst & Trader • Nov 1, 2026 at 8:00 AM EST

The Nasdaq 100 meltdown signals a new five-wave down sequence as Elliott Wave patterns shift. While algorithmic gamma hedging drove the sharp decline, historical data points to a potential rally following the midterm elections.

In this week's update, I discuss the recent market meltdown that occurred on Friday. I analyzed whether the market was following an expanding diagonal pattern, but noted that this would break a key rule requiring wave three to be longer than wave one in price terms, making me question the validity of this count.

I ultimately shifted my preferred analysis, treating the highs as complete and counting the current decline as the beginning of a five-wave down sequence at the sub-minuette degree, with the market working on its first wave down.

I discussed the potential impact of the upcoming midterm elections on market sentiment and noted that historically markets tend to rally after midterm elections regardless of which party wins.

I also mentioned that the recent market crash appeared to be driven by algorithmic trading, particularly gamma hedging strategies, which completely eliminated gamma levels across the Nasdaq.

Disclaimer:

Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC Rule 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will, or is likely to, achieve profit or losses similar to those shown.