Wednesday, November 18, 2009

STI -- Wave 5 in progress (possibly not ended)

Earlier, I mentioned that we could likely have had a wave 1 extension rally from Mar 09.
Wave 3 is from 2235 to 2700.

According to Elliott Wave Theory, wave 3 cannot be the shortest wave. Since my wave 1 is longer than my wave 3 due to a wave 1 extension, wave 5 must be smaller in length than wave 3! This, we can see from the chart above.

The theoretical maximum would be 2605 + (2700 - 2235) = 3070 (chart not to scale).
Scary proposition for the shortists? (Damn... why didn't I think of this before raising short...)

Any break above that number would prompt a recount.

Looking back in time, at 12 Mar 08 and 24 Jul 08, a resistance was formed near this 3000 mark.
Will the rally extend till then, henceforth killing all the shortists at the current level and fuelling extreme optimism?

Shall see....

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