Deep Correction
The STI dropped substantially today in line with world markets. The deep correction has invalidated the previous wave count. The revised wave count is as shown in the chart. This count conforms with Elliott Wave Principle rules. Motive Waves 1, 3 and 5 either go straight up or in five subwaves, with the third subwave not being the shortest. The corrective Waves 2 and 4 have three subwaves (a, b and c), with Wave 2 in a regular flat pattern and Wave 4 in a running flat pattern.
The count shows that the STI has topped and there is a big gap down today which means that the decline will continue next week, possibly down to about 3300.