STI playing hard to get...

My last entry took concern over STI's potential Engulf candlestick pattern and an anticipation that if STI is lower by Friday (which is common for a Friday's reaction), it should be heading south by Monday. Seems like STI won't want to make it that easy for me.


Fig 1 STI Daily Chart

What STI has created now is a Harami Cross. Because of its longer bar being bearish, it should see the STI moving North, because this is supposed to be a reversal pattern.

As for the indicators, Stocastic is moving south, but RSI seems to be reversing up. I was kind of expecting this move because, under normal circumstances, RSI is supposed to create divergence before the actual move begins. If this is so, my 3,003-3,010 level might still be reached.

As for the wave count, it seems to me that STI has also completed a minor 5-wave move in between 2 corrections. So this might still be a B of the the 4th of final wave.