Preferred Elliott Wave view suggests rally to 19770 completed wave (W) and wave (X) pull back is also proposed to be over at 18973 with a test of equal legs (100% Fibonacci extension). As per Chart of the day presented yesterday (4.6.2015), we were looking for higher prices toward 19888 – 20032 area to complete a (w)-(x)-(y) structure. This area has been hit but market correlation suggests up move is likely to extend and become a triple three Elliott wave structure i.e. (w)-(x)-(y)-(z). We view the Index to be ending wave (y) between 19888 – 20032 area and then pull back in wave (x) to correct the rally from 19285 low. After that expect another swing higher toward 20100 – 20200 area to complete a cycle from 18973 low. As the pull back is represented with a dashed line accompanied by a green arrow, we don’t like selling the Index and expect the Index to find buyers in the dip in 3, 7 or 11 swings as far as prices holds above 19285 low and more importantly the pivot at 18973 low remains intact.
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