The Swiss Market Index (SMI) is one of the other Capital Markets worldwide that is building motive wave from the lows of March 2020. We can clearly see that it has already completed 3 waves to the upside and we are correcting on wave 4 now.
SMI September 16th Daily Chart
Wave ((1)) ends at 10534 as leading diagonal. Wave ((2)) did a ouble correction to complete at 9498. Then the SMI bounce from there developed another impulse as wave ((3)). The wave (1) of ((3)) did another leading diagonal. (If you want to learn more about Elliott Wave Theory, please follow these links: Elliott Wave Education and Elliott Wave Theory). Then wave (2) of ((3)) was short ending at 10922. Wave (3) of ((3)) impulse ends at 12088 and wave (4) of ((3)) pullback at 11800. Last push to complete wave (5) of ((3)) and wave ((3)) peak at 12582.
SMI October 22th Daily Chart
The SMI continued dropping as expected ended wave ((4)) at 11381.74, a little below from our buying area. 11844 – 11395. Index bounced nicely and it should complete wave (1) soon. The pullback as wave (2) must stay above of 11381.74 level to validate this view.
SMI December 04th Daily Chart
The rally continued given no mercy to sellers breaking the last peak of wave ((3)) forming an impulse, 5 waves structure from 2018. SMI ended wave ((5)) and wave I at 12625.81 and from here we could begin a pulback that easily will reach the 11000 points. This pullback should develop a 3 or 7 swings correction structure to finish wave II before continue with bullish trend.
SMI December 04th Alternative Daily Chart
The chart above is an alternative view for SMI. As the index did not reach our minimum target at 12852.67, it is still possible to think in an ending diagonal to complete the cycle. For this we need 2 more slighly highs to complete the pattern and hit our target. If this scenario happens, the structure can reject market very strong to the downside; thus, keep in mind this in your future trades.
Source: https://elliottwave-forecast.com/stock-market/index-smi-completed-important-market-cycle/