Supplement: Two Counts
This is a quick supplement to alert that it is evident now that there are two alternative wave counts. In the chart above, the STI has almost finished the diagonal structure. Minor Wave 5 (black) has crossed the top of the diagonal structure, which is legitimate. It closed at about today’s intraday high, and there is a gap up, so there is still upside momentum. After it reaches the top, it will quickly and sharply decline, forming Wave 2 (red). The typical retracement for Wave 2 is 61.8% of Wave 1. It may even fall by 78.6% to the bottom of Minor Wave 2 (black), which is the beginning of the diagonal structure. The silver lining is that Wave 3 (red) will then form, rising sharply and strongly.
The other alternative count is shown in the chart below. Here the diagonal has completed, with Minor Wave 5 (black) also going over the top of the diagonal. Wave 2 (red) has completed, retracing nearly 61.8% of Wave 1 (red). This retracement gives some credibility to the wave count. The STI is now forming Wave 3 (red), rising sharply with a gap up. In the next few days we shall be able to see which is the proper wave count.
