Technology Sector ETF: ticker symbol XLK short-term Elliott Wave view suggests that a bounce to $70 ended cycle degree wave “x” bounce on 12/03/2018 peak. Down from there, the ETF has broken to new low below 11/20/2018 low $63.38 confirming the cycle degree wave “y”. And with this break below $63.38 low the sequence from 10/03/2018 & also the sequence from 12/03/2018 peak has become incomplete to the downside favoring more weakness ahead.
Down from $70 high, the initial decline to $64.91 low ended Minor wave A in 5 waves. Up from there, a bounce to $67.14 high ended Minor wave B bounce. Below from there, a decline to 63.87 low unfolded in another 5 waves structure in Minor wave C lower and completed the Zigzag structure within intermediate wave (W). Then a bounce to $67.42 ended intermediate wave (X) with lesser degree zigzag structure.
Currently, the decline from $67.42 high is unfolding in lesser degree zigzag structure & expected to extend lower towards $61.28-$59.83 100%-123.6% Fibonacci extension area of intermediate wave (W)-(X). Near-term, while bounces fail below $67.42 high expect ETF to extend lower. We prefer more downside against $67.42 high in the first degree.
XLK 1 Hour Elliott Wave Chart
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