The completion of false break on STI

In my last entry, I harvested a thought that this would be the false break of STI and that it will go back above the trendline. Well, it did not complete the move in one day but 2.


Fig 1 STI Daily Chart
As you can see from the Daily chart, STI has by today moved above the trendline and stayed above. There are 2 predictions that I can make on this:

1) STI is about to have its trend reverse;
2) STI is still going higher;

I will assume that the next higher high would be heading for 3,068 (Fibonacci 50% projection) or 3,099 (Fibonacci 61.8% projection) before coming down. Let's assume my wave count this time is right, I make further projection of the 5th wave to be the same as 1st, then STI is going for 100% projection of 3,202.

This is possible judging from the minor wave count to make this correction a 4th of the 5th wave.


Fig 2 STI Weekly Chart
On weekly basis, the indicators are reversing yet no visibility of a divergence. It is possible that such divergence are much less available in weekly chart, it appeared before on this wave (since Feb 2009).

An after note on the case, I still find my wave count on STI a little wierd especially the 2nd wave which looks too small. The whole thing still looks like a 3 wave pattern of ABC. If this scenario is true, then the projection is going to hit 3,650 base on swing move. Now that will coincide with my projection on DJIA to reach 12,000 region. For now this is still speculative from my end.