Major Wave 4
I’m continuing with Chart 2 from last week. Chart 1 is likely to become invalid. What would be Subwave 4 (brown) has dropped below the top of Subwave 1 which violates the Elliott Wave Principle unless the structure is a diagonal. I believe this is most unlikely, and so I choose to continue with Chart 2 instead. The continuation is shown in the chart above. Major Wave 4 (blue) could be a flat, with three subwaves shown in red. However, as noted last week, Major Wave 4 is likely to be a large wave moving sideways or down. Thus the STI is likely to descend further, possibly to the end of Major Wave iv (blue) at 3524, or perhaps it could oscillate sideways to form a triangle. We shall see.