New Impulse Wave
I have rejected Chart B that was presented last week. Although the wave count was valid, it is noted that Subwave 4 (brown) has entered the territory of Subwave 1 (brown). The Elliott Wave Principle states that this is valid only if the wave structure is a diagonal. Based on the observed structure I consider that this is improbable and hence reject it.
The above chart is the updated Chart A. This has two alternatives. Firstly the STI could have formed the first subwaves of Wave 5 (red), i.e. Subwaves 1 and 2 (brown) and is now forming Subwave 3. The other alternative, as shown by the underlined counts, is that Wave 5 (red) has topped and hence Major Wave v (blue) and Major Wave 3 (blue) have topped. What followed was Wave C (red) which bottomed, as shown, and a new impulse wave is being formed. But it is possible that Wave C has not bottomed and could go down further. We need to see further development of the waves.