The decline to 2057.23 completed wave X. The wave ((w)) rally from this level is unfolding in the form of a double correction (w)-(x)-(y). Wave (w) of ((w)) took the form of a double correction w-x-y and ended at 2113.5. Wave (x) of ((w)) also took the form of a double correction w-x-y and ended at 2079.25. Wave (y) of ((w)) is currently in progress towards 2136.43 – 2149.86 and is taking the form of a triple correction w-x-y-x-z where wave w ended at 2106.5, wave x ended at 2091.5, wave y ended at 2122.5, second wave x ended at 2112.25 and wave z is in progress towards 2136.43 – 2149.86 to complete wave ((w)).
Expect some profit taking from the 2136.43 – 2149.86 area and the Index to pull back 3 waves lower in wave ((x)) to correct the rally from 2057.23. We do not like selling the proposed wave ((x)) pullback. We expect buyers to come again for the next leg higher once wave ((x)) pullback is complete.
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