3 April 2020

Subwave ii Correction

As expected, the STI formed a Subwave ii (brown) correction. The likely support is at or near the Fibonacci 61.8% ratio retracement at 2343.19. If this does not hold, the next support level is at about 2280 (not shown) which is the Fibonacci 78.6% ratio. However if this also does not hold, then the STI could fall to 2208 or below.

If the STI falls below 2280, the wave count will be incorrect as Subwave ii cannot fall below the start of Subwave i. The wave count will have to be revised. And as I said last week, then the recent bottom would be the end of Subwave iii and I would not have to make an exception to the wave count by labelling Subwave iv (brown) as shown.

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