Subwave 5
The STI has finally started to form Subwave 5 (black), rising sharply. It will complete the leading diagonal, forming Wave 1 (red). It is typical that upon completion of Subwave 5, a deep retracement will follow. Assuming that Subwave 5 will end at the top line of the diagonal at 3350, a 61.8% retracement will mean that the STI will drop to 3160. Very often Subwave 5 ends before reaching the top line. So the 61.8% retracement will fall down lower.
Even more worrisome is an advice by an expert Elliott Wave Principle analyst that a leading diagonal will return to the region where it originated. This will be around 3040 in the current leading diagonal structure. It would be wise to progressively move towards 100% cash as the STI moves towards the top of Subwave 5.