Another Diagonal
The STI has formed another diagonal, with Wave 4 (red) going below the top of Wave 1 (red). According to the Elliott Wave Principle, a fourth wave cannot enter into the territory of a first wave unless in a diagonal structure. It can be seen that this was the case in the prior diagonal. Wave 4 (red) has completed and Wave 5 (red) has just begun which will reach near the top line of the diagonal.
However, there is an alternative wave count. The currently labelled Wave 3 could be Subwave i instead and Wave 4 could be Subwave ii instead. These would be the subwaves of a large Wave 3 (red) and the STI would now be forming Subwave iii of Wave 3. We have to see how strongly the STI will develop next one week or two to determine which of the wave counts should apply.