The STI plunged over the last three days. Is this the beginning of a big fall down towards the prior bottom on 23 March? In any case the previous wave count has been invalidated. The designated Minor Subwave iii (black) in last week’s blog has topped and the following wave, Minor Subwave iv, has plunged below the top of Minor Subwave i, as shown by the blue line. This is not allowed by the Elliott Wave Principle. A fresh wave count in the chart shows that the STI has been in corrective mode all along and is set to go down further forming Wave z (orange).
Why is there a question mark in the title of this blog? There is a small probability that the STI is still in an uptrend. We have to see whether the STI turns upwards strongly next week. But this may simply be wishful thinking. The STI could be in what I call a “square root” recovery, coming up sharply from the bottom, only to go sideways over a prolonged period.