Supplement: Subwave ii Ended
I’m writing this supplement for those readers who are students of the Elliott Wave Principle. You can see from the chart that Subwave i (red) started at 3023.95 and ended at 3194.19. A 61.8% retracement from the top of Subwave i would be at 3088.982. Note that Subwave ii (red) ended at 3089.49, just 0.5 points away from the 61.8% retracement level.
It is common for a second wave correction to amount to 61.8% of the first wave. 61.8% is a Fibonacci ratio. It is amazing how often we see that wave patterns can be measured by Fibonacci ratios. The 61.8% retracement of Subwave ii gives us confidence that Subwave ii has ended and we are now seeing Subwave iii forming. This is further validated by the sharp jump in the STI today, with a gap up.