Correction Not Over?
The STI has turned upward. But is the correction over? Wave c (orange) may not have ended, but could turn down by forming a third minor subwave, as shown in the chart. A sign that the correction is over would be if the STI continues upwards next week to get above the top of Wave i (brown). A confirmation of this would be if the STI continues further upwards to get above the top of Wave b (orange).
In the chart above I have shown an alternative count of the higher order Waves 3 and 4 (red). In my last blog I showed that Wave 5 (red) was completed. In this alternate count, the long wave upwards in the middle of the chart is Wave 3 (red), and Wave 5 (red) is only now being formed, starting with its Subwaves i and ii (brown).
Both wave counts are valid for now. As these are the higher order counts it will take some time to verify them. The lower order counts are the same. Our main concern now is whether the market has really turned around or not.