Mark Galasiewski, Editor of Asian-Pacific Financial Forecast, Elliott Wave International, sees some upside left in the short-term. He expects the markets to top out in the next several weeks, but expects a correction prior to that advance. “We are looking for a correction, which could be around 5-10% followed by one further new high wave up. After that, we will be looking for a top.”

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Here is a verbatim transcript of the exclusive interview with Mark Galasiewski on CNBC-TV18. Also see the accompanying video.

Q: Are we looking slightly toppish in most markets? Is it time to take a contrarian view?

A: Not yet, we have got a little further upside in the short-term left. I can't say exactly when that is going to happen, but I will say in the next several weeks we are going to top out. We expect a correction prior to the advance.

Q: How does it work out as we go forward? Do you see emerging markets (EM) doing better or do you see a pick up coming in perhaps in the US and more so in European markets?

A: Going forward, we expect EMs or at least those in Asia such as India to continue to outperform the US. That is not a short-term call. This is a multi-month rally that we are talking about. By that perspective, we expect EMs to continue to lead.

Q: If you had to chart the course of the Sensex currently, which you track closely, how much more of an upside do you see? How far will the correction take us down and where does the second wave take you to?

A: We deal with patterns, which are not dependent on price. So, we will speak in hypothetical terms. For example, and I am not making this a short term call, if hypothetically we top today, a simple 38% retracement of the prior advance since the March low would fill the gap formed on March 18 after the election announcements.

Q: Do you see a correction happening in the Sensex and then the market starting to pick up or it is pretty much straight way forward because we have had a pretty strong uptick right now?

A: We do expect there to be an additional down up sequence. That means we are looking for a correction which could be anywhere between 5-10% followed by one further new high wave up. After that, we will be looking for a top.