Best reading of the cycle suggests that the decline to 1105.9 ended wave ((W)). From this level, the index bounced and ended wave ((X)) at 1193.85. The index has since resumed the decline lower, unfolding in a double corrective structure WXY where wave W ended at 1124.75, wave X ended at 1146.72, and wave Y is in progress towards 1060.71 - 1077.14 to complete wave (W). Once wave (W) is complete, the index can see a larger bounce in wave (X) to correct the decline from 1193.85. As far as wave (X) bounce fails below 1193.85, expect the index to continue lower again afterwards. We don't like buying any proposed bounce in the chart and expect the index to continue the decline lower as far as 1193.86 pivot stays intact.
If you would like to have an access of EWF analysis in real time, click here and feel free to join us. We provide Elliott Wave charts in 4 different time frames, 2 live webinars by our expert analysts every day, 24 hour chat room support, market overview, daily and weekly technical videos and much more.