Thursday, December 10, 2009

STI Updates

A long time since I really updated this blog on STI... Been really busy with stuff... :(

Anyway, my updated chart and counts

This chart builds upon the earlier count of the 3 months long ascending triangle, of which I counted as a 4th wave. To me, the 5th wave has started at the 2605 region.

Earlier, I made a mistake of pre-empting the market too early. I took into account the great bear line, which was breached without much effort. Also, the time frame of the 5th wave was too short.

The most recent count seems to fit the rules of Elliott Wave better. STI appears to form a rising wedge. It appears possible that the we are in an ending diagonal in the 5th wave of A wave of Pri B. This rally looks like it has some more legs, but the rising wedge pattern that is forming is indeed worrying.

In addition, MFI has been showing negative divergence since 29th July, and this divergence is continuing now.

Also, the signs I mentioned earlier that could signify a possible turn were
1) Bollinger Bands closing up
2) Penny stocks in play
Both signs are now playing out as well.

When it looked 'obvious' that a crash is coming in October, it didn't as expected.
Now, when it looks so obvious that a year end rally could be in place, could it not come as well?

The stars are starting to align themselves. Perhaps I should look into offloading some of my holdings soon... A need to rethink if I should really keep too many for long term dividends...


  1. Hey junwei,

    I'm seeing the same thing as you. That's why i wonder why Eagle is saying that we are already at E of wave 5. Or is he referring to E of wave 4?

  2. On a second thought,

    can wave A of B be a 3wave zig-zag motion instead of a 5wave impulse?


    wave a of A: march to june (5 waves)
    wave b of A: june to july (3 waves)
    wave c of A: july to dec (5 waves, extended 3rd wave)

  3. Hi,

    Eagle also mentioned about an Ending Diagonal. Ending Diagonals are commonly found in 5th waves or C waves... i.e. ending actionary waves...

    I will take a more in depth look over the weekend... Been very busy...


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