Two Alternate Wave Counts
The STI went down further and then picked up a bit this past week. This has given rise to an alternate wave count as shown above. We see that Wave 4 (red) has dragged out and now Wave 5 (red) is starting to form. But last week’s wave count is still valid, if we consider that Subwave 2 (brown) has gone down further and Subwave 3 (brown) is now starting to form. These are two valid alternate wave counts. We have to wait for the waves to develop further until one becomes invalid and has to be rejected.