With FTSE STI 2,800 level broken today, this has invalidated the Elliott Wave 3 previously described (What’s Next For STI ?). However, the uptrend since the rebounding at 2,540 still yet to be invalidated. As such, technically, STI still on the uptrend. With wave 3 invalidated, current STI will have to reconsider as wave 2. These wave 2 is not the typical 3-pattern (A,B,C) type but on a possible Expanding Triangle pattern.
Theoretically, this is how an Expanding Triangle looks like with a 5-nodes of A,B,C,D,E then resume the previous trend.
Looking at STI chart after today, 4th May 2016, quite a similar pattern can be observed.
If we take STI 2,906 as the peak of wave 1, then the pulled back after that which stop at 2,800 can be considered node A of the Expanding Triangle. The rebound to 2,960 next can be considered as node B of …