19 October 2018

More Downwards

The current sideways movement of the STI implies that it is forming a zigzag, with the second down leg, Subwave c (brown), starting to form. It is an Elliott Wave Principle guideline that Subwave c will be as long as Subwave a. So the big corrective Wave C (brown) is likely to end around 2850.

We will have a clearer picture when the structure forms further. The key word is “clearer” and not “clear”. We should note that corrective waves are always difficult to predict. They can be zigzags (single, double and triple), flats (regular, expanded and running), triangles (contracting, barrier, expanding and running) as well as combinations of these forms in double or triple structures.

The wave count in the chart above is the most reasonable at this time.

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