The STI continues to go sideways with a slight negative bias. Investors are nervous and taking profit to protect themselves from a potential severe downturn in the stock markets. It is clear that global economies are suffering and will remain down for some time. However, Robert Prechter, an Elliott Wave Principle guru, has presented papers showing that there is no correlation between economic and stock market performance. My previous uptrending wave count is still a possibility, but I’m keeping to the negative outlook for now.
(Observant readers would have noticed that I have made a slight change to the wave counts for Wave y (orange), by moving the end of Subwave iii (brown) slightly upwards. Thus Subwave iv (brown) ends at a higher point than the previous day’s bar. This makes the wave counts acceptable, without having to break any Elliott Wave Principle rule. No other wave counts are affected.)