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Sunday, March 18, 2012

STI Elliott Wave Structure

According to Elliott Wave International ( EWI ) March 15's report, the Elliott Wave count for the STI Weekly Chart is labeled in blue as below:

As always, the commentary from EWI is very brief. They did not elaborate much on the wave structure leaving it to the readers to interpret ( which is frustrating ). 

Based on my interpretation, if a downtrend has five waves ( 1, 2, 3, 4, 5 ) followed by a three waves ( a, b, c ) counter-trend move. We should be looking at a 5-3-5 correction ( from the "Top" marked in the chart )  where the 1st five wave ( 1, 2, 3, 4, 5 ) is corrective wave "A" of a higher degree, the three wave ( a, b, c ) is corrective wave "B" of a higher degree ( which is where we are in now ).  From here, we should expect another downtrend  of a 2nd five wave ( remember we said 5-3-5?  The 5-3 has unfolded.  The last 5 in the 5-3-5 is what we are heading for now ).

Please note that the Elliott Wave counts ( in blue ) are not my view, it is the view of EWI. I have merely added my interpretation ( those labels in gold color ). 

Below is the Elliott Wave count for STI Daily Chart ( according to EWI ):