Slow Finish
This week’s chart has been amended to change the colour of the waves 1 to 5 from red to brown to make them consistent with the rest of the chart. They are subwaves and the completion of Subwave 5 will complete Wave 1 (red). Over the week, the STI has been taking its time to finish the diagonal by going sideways. The loss of momentum is worrying. The danger is that Subwave 5 will be truncated and Wave 2 (red) will start prematurely.
In any case Wave 2 will drop substantially, given the size of Wave 1. It is likely to drop to between 3150 and 3170 depending on how high will be Subwave 5. It is not too late to quickly cash out of equity stocks and move over to precious metal ETFs and perhaps a bitcoin ETF, which are showing upside potential.