
Wave 1 Formed
The STI has fully formed Wave 1 (brown) with five subwaves. I would expect a corrective Wave 2 to form next, to be followed by a strong upward Wave 3. However we should note that the fact that we can count five subwaves up does not guarantee that we really have the beginning of an impulse wave. The wave structure can evolve into a sideways wave formation. My wave count will have strong validation if the wave continues upwards to reach beyond the resistance zone outlined by the two horizontal blue lines.
By the way I have adjusted the earlier wave count to give a more balanced structure of Wave ABC (brown), making the lengths of Waves A, B and C to be not too different. However the end of Wave C (brown) has a question mark, as it is not a certain bottom, until the current wave is truly an impulse wave. As always, corrective waves have lives of their own as there are many varieties including complex corrective waves. Wave C may not be a simple Wave abc as labelled, but could extend further sideways, turning into a complex corrective wave. But I am keeping an optimistic outlook for now.