Major Correction
Today the STI dropped substantially. What was labelled as Minor Subwave iv last week has dropped below the top of Minor Subwave i. This breaks a rule in Elliott Wave Principle, which says that a fourth wave cannot enter into the territory of a first wave. The wave count has been revised as shown above. Subwave 4 is now shown as a Triple Three (for those interested, you can refer to Elliott Wave Principle by Frost and Prechter, Figure 1-46, page 53). Thus Subwave 5 has ended and so has Wave 1 (red). The STI is now forming Wave 2, which could be a major correction. A typical second wave corrects by 61.8% of the first wave. This is not a rule; just a common occurrence. We shall see.