Short Term view in XLK suggests the rally from October 5 low is unfolding as a 5 waves impulse Elliott Wave structure. Up from October 5, wave ((i)) ended at 153.71 and pullback in wave ((ii)) ended at 149.60. Internal of wave ((ii)) unfolded as a zigzag structure. Down from wave ((i)), wave (a) ended at 150.53 and wave (b) pullback ended at 153.15. Stock then resumes lower in wave (c) which ended at 149.60. This completed wave ((ii)).
The stock has rallied higher in wave ((iii)). Internal of wave ((iii)) is unfolding as a 5 waves impulsive structure. Up from wave ((ii)), wave (i) ended at 151.61 and pullback in wave (ii) ended at 150.00. Stock has resumed higher in wave (iii) towards 156.71, wave (iv) ended at 154.61, and wave (v) of ((iii)) ended at 159.18. The pullback in wave ((iv)) has begun to correct cycle from October 12. Wave (a) ended at 157.51. Expect the ETF to bounce higher in wave (b), then we are looking down for wave (c) to complete wave ((iv)) before the rally resumes in wave ((v)). Near term, as far as wave ((ii)) pivot low at 149.60 stays intact, expect wave ((iv)) pullback to find support in 156.91 – 155.97 area for further upside.
