In our previous Chart of The Day at 5/21/2015, we said that the rally from the wave X low (2057.41) took the form of a double correction (w)-(x)-(y) and the whole rally is complete as wave ((w)) at 2134. We also said that a wave ((x)) pullback is in progress to correct the rally from the 2057.41 low towards an ideal target area of 2086.64 – 2095.66 (50 – 61.8 back) before the Index resumes the rally again.
Since our last update, the current preferred Elliott Wave view suggests the rally from wave X low at 2057.41 is instead unfolding in the form of a triple correction ((w))-((x))-((y))-((x))-((z)), where wave ((w)) ended at 2113.5, wave ((x)) ended at 2079.25, and wave ((y)) ended at 2134. The second wave ((x)) pullback is currently in progress towards 2101.09 – 2113.03 before the Index turns higher in wave ((z)). We do not like selling the proposed wave ((x)) pullback. Once wave ((x)) pullback is complete in 3, 7, or 11 swings, buyers are expected to come again and push the Index higher provided the pivot at the X (2057.41) low remains intact.
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