Espresso Testing - Android

I'm having an issue with Android Espresso testing. I can't seem to be able to have access to "AndroidJUnit4.class". The code below is giving me "@RunWith(AndroidJUnit4.class)" as "Cannot resolve symbol AndroidJUnit4" .

import android.test.suitebuilder.annotation.LargeTest;

import org.junit.Rule;
import org.junit.Test;
import org.junit.runner.RunWith;    

@RunWith(AndroidJUnit4.class)
@LargeTest
public class HelloWorldEspressoTest {

    @Rule
    public ActivityTestRule<MainActivity> mActivityRule = new ActivityTestRule(MainActivity.class);

    @Test
    public void listGoesOverTheFold() {
        onView(withText("Hello world!")).check(matches(isDisplayed()));
    }
}

I know this is is related to the build.gradle file settings but I don't know whats wrong. Below is a copy of what I'm using.

apply plugin: 'com.android.application'

android {
    compileSdkVersion 23
    buildToolsVersion "23.0.1"

    defaultConfig {
        applicationId "example.com.myapp"
        minSdkVersion 22
        targetSdkVersion 22
        versionCode 1
        versionName "1.0"

        testInstrumentationRunner "android.support.test.runner.AndroidJUnitRunner"
    }
    buildTypes {
        release {
            minifyEnabled true
            proguardFiles getDefaultProguardFile('proguard-android.txt'), 'proguard-rules.pro'
        }
    }
}

dependencies {
    compile fileTree(dir: 'libs', include: ['*.jar'])
    compile 'com.android.support:cardview-v7:23.0.1'
    compile 'com.android.support:recyclerview-v7:23.0.1'
    compile 'com.android.support:design:23.0.1'
    compile 'com.android.support:appcompat-v7:23.0.1'

    testCompile 'junit:junit:4.12'
    androidTestCompile 'com.android.support.test.espresso:espresso-core:2.2.1'
    androidTestCompile 'com.android.support.test:runner:0.4.1'
    androidTestCompile 'com.android.support.test:rules:0.4'
    androidTestCompile 'com.android.support.test.uiautomator:uiautomator-v18:2.1.2'
    compile project(':volleylibrarygitpull')
}

configurations.all {
    resolutionStrategy.force 'com.android.support:support-annotations:22.2.0'
}

I would really appreciate if someone could tell me what's wrong with my build.gradle file in order for me to use Espresso testing framework. I need to support material design so a lower API level then 23.0.1 that has cardview, recyclerview will do.