The previously labelled Wave 4 (brown) plunged below the top of Wave 1 (brown) today. The STI gapped down, as if to emphasise that it has reversed direction. The previous wave count is invalidated and the new count is as shown above. The prognosis is that the STI will continue to plunge further.
Wave C (brown) is now expected to be formed by Waves w, x and y, coloured in red for the sake of clarity. It would consist of a Wave w flat, a Wave x zigzag and potentially a Wave y zigzag. It can now be seen that Wave C (brown) is stretching out further, to better match the length of Wave B (brown) in terms of time. Wave C could potentially end near the bottom of Wave w (red) at 3040.16 or perhaps the bottom of Wave A (brown) at 2955.68.
Some analysts are saying that the US market has started to correct or is close to doing so, and it will be a big one! Be prepared to quickly take profit or cut loss, if not done already. There will be another blog tomorrow.