Decline to 2061.9 completed wave X. Wave ((w)) rally from this level is unfolding in the form of a double correction (w)-(x)-(y), where wave (w) ended at 2118.1 and wave (x) ended at 2084.1. In our previous Chart of The Day at 5/19/2015 (see related idea below), we said the last leg wave (y) is in progress towards 2140.3 – 2153.6 to complete wave ((w)). We also said some profit taking should be seen from this area and the Index to pullback 3 waves lower in wave ((x)) to correct the rally from 2061.9.
Since our last update, current preferred Elliottwave view suggests wave ((w)) has completed at 2137.1. Wave ((x)) pulllback is currently in progress to correct the rally from 2061.9 towards an ideal target area of 2090.6 – 2099.5 (50 – 61.8 back). Wave ((x)) pullback is unfolding in the form of a double correction (w)-(x)-(y), where the first leg of the pullback wave (w) is expected to complete at 2116.4 – 2119.9. Wave (x) bounce should start after wave (w) is complete to correct the decline from 2137.1, followed by another leg wave (y) lower towards the ideal target area of 2090.6 – 2099.5 to finish wave ((x)). We do not like selling the proposed wave ((x)) pullback. Once wave ((x)) is complete, expect buyers to come again and push the Index higher in 3 waves at minimum per Elliott Wave hedging technique.