Short term Elliott Wave View suggests that the rally from September 2020 low is unfolding as a 5 waves impulse Elliott Wave structure. The 1 hour chart below shows wave (3) of this impulse ended at 35.2. Wave 4 of (3) ended at 32.16, and the rally in wave 5 of (3) unfolded as an impulse in lesser degree. Up from wave 4, wave ((i)) ended at 33.95, and pullback in wave ((ii)) ended at 32.60. The ETF resumed higher in wave ((iii)) towards 34.58 and wave ((iv)) pullback ended at 33.52. Final leg higher wave ((v)) of 5 ended at 35.20 which also completed wave (3) in higher degree.
Wave (4) pullback is now in progress to correct cycle from January 29 low before the rally resumes. Structure of the pullback is proposed to unfold as a zigzag Elliott Wave structure where wave A ended at 34.25. Expect the ETF to rally in wave B then turn lower in wave C of (4). Afterwards, expect the ETF to resume higher again. As far as pivot at 32.16 low stays intact, expect pullback to find support in the sequence of 3, 7, or 11 swing for more upside. Potential target to the upside is the 100% fibonacci extension of wave (1)-(2) from September 2020 low at 37.54.
