Deep Dive
Stock markets didn’t care less about the Trump-Kim summit, but were concerned about US Fed rate hikes instead. The STI continued to plunge and went past the bottom of the correction channel. The extended flat Wave abc (orange) is now formed, showing its 3-3-5 structure. But it is possible that the last leg could extend further down.
Although the previous wave count would be invalidated only if the STI drops below the start of Wave i (brown) at 3338.96, I have revised the wave count. The STI has clearly been in a sideways path, having returned close to the bottoms of Wave w and Wave y. The whole structure of Wave 4 (red) is a zigzag-flat-flat combination Wave wxyxz.
A nightmare scenario would be that Wave z (red) morphs into a zigzag, which would mean that the STI could drop to 3100 of thereabouts. I think this will not happen.
I mean, I hope this will not happen.