Deep Correction
The STI dropped substantially again over this week. Since the top on 17 February 2022 there has been a series of 3-3-5 flat waves, suppressing the STI. It would be instructive to look at the big picture provided by the weekly chart over a longer time period, which is given below. The wave counts of the daily chart have been adjusted to match those of the weekly chart. It can be seen from the weekly chart that the STI has been moving sideways within the range of about 3000 to 3500 since March 2021. It is a wide range, but this is due to market volatility. The STI is likely to drop further next week, but let us hope that there will be support at around 3130 or 3100 which were the two recent bottoms.
