Still Uncertain
The wave development of the STI this week reflects the continued uncertainty in global markets. The Minor Subwave e (black) of the triangle (see last week’s blog) has gone down too much below the base line of the triangle. I have modified the wave count to depict the current wave structure as a double three, consisting of two Subwaves abc linked by an x Subwave. If this wave count is correct, then the sideways correction has ended and we are seeing the start of impulse Subwave 5 (black) (not labelled). However this uptrend is not very strong and it looks like the STI is still going sideways. In this case we shall see an x Subwave followed by a third Subwave abc. Hopefully next week this uncertainty will clear up.