Wave 3
Yesterday the STI jumped out of the trend channel with a gap up. Today it rose again with another gap up. It is obvious that the STI is now forming Wave 3 (orange), by initially forming Subwaves i, ii and iii (brown). Although I have put in the label for iii, it is possible for Subwave iii to rise further, before forming Subwaves iv and v (brown).
The end of Subwave v (brown) may not be that it is the end of Wave 3 (orange). Observe that Wave 1 (orange) is about 500 points high. It happens frequently that a wave 3 can be 1.618 times the length of the wave 1. Thus Wave 3 (orange) can be about 800 points long, which means that it would end at about 3600.
We should not jump the gun, and I’ll show the wave counts if that happens. But the future certainly looks bright for the stock market.