19 August 2018

In Correction

Apologies for the late report, as I have just returned from a vacation. Since the STI has dipped further, the wave count has been revised. The whole structure after the top of Wave 3 (red) is a combination corrective wave.

Wave A (brown) is itself a combination corrective wave, consisting of Subwave w (red) which is a zigzag, Subwave x (red) which is a linking wave and Subwave y (red) which is a 3-3-5 flat. Wave B (brown) is a linking wave. Wave C (brown) is assumed to be a double zigzag, with the first leg Subwave w (red) and the linking Subwave x (red) having been formed. The Subwave y (red) should complete the structure. This would be Wave C (brown) to complete Wave 4 (red). After this, Wave 5 (red) should be formed, going upwards.

To check for consistency, I have looked at the weekly chart below:

The daily chart covers the rightmost portion of the weekly chart, starting before the end of Wave 4 (brown). The weekly chart tells us that the current wave count will be invalidated if the STI falls below the blue horizontal line at 2964.10. This is the top of Wave 1 (red). Wave 4 (red) cannot end in the territory of Wave 1 (red).

Since early 2018 the STI has been reacting to global uncertainties by going sideways and now downwards. Let us hope it will recover soon.

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