Uncertainty
Although the STI has shown an uptrend in the last few days, there is great uncertainty in the market. A positive scenario is that Subwave iii (red) is forming, which will be validated by the STI rising strongly well above the top of Subwave i (red). On the other hand, it is apparent from the chart that the STI is still caught in a sideways correction. It could be that the December structure is a continuation of Wave C and not Subwaves i and ii. This means that downward pressure is still strong. It could also be that the multi-month structure since April 2021 is Wave 4, as I pointed out in my last blog. The market uncertainty is a result of worries over the Omicron virus that is sweeping the world.
Anyway, let us take our mind off the market and enjoy the holidays. Have a Happy Christmas!