Short term Elliott Wave view suggests rally to 11883.6 completed wave (Y). Decline from here is taking the form of a double three or WXY structure when wave W ended at 11301, wave X ended at 11684.3, and wave Y lower is in progress. Wave ((w)) of Y ended at 11259.1, wave ((x)) of Y bounce is currently in progress and could retrace 50 – 61.8% (11471.7 – 11521.87) of the move lower from 11684.3.
As the proposed wave ((x)) bounce holds below 11684.3 high, expect the Index to continue lower towards 10963.75 – 11101.63 area before it turns higher. As the decline lower is represented with a dashed line, we don’t like selling the Index and expect the Index to find buyers in 10963.75 – 11101.63 (equal leg – 1.236 extension area) for a 3 waves higher at minimum as per Elliott Wave hedging idea.