Subwave iv
I have adjusted the wave count such that the STI has just formed Subwave iv (brown), which is a substantial drop. I have relabelled Subwave ii (brown), which now has a sideways movement in the latter part. It is usual that a second wave has a substantial drop while a fourth wave has a sideways move. However these can be reversed in what is known as “alternation” in Elliott Wave Principle. Next week we shall see Subwave v forming, going upwards. Look for stocks with good potential to ride up along with Subwave v. The ride up should be significant as Subwave v will rise above the top of Subwave iii.