Wave 2 Decline
The worsening Singapore economy caused the stock market to decline and the deepening US-China trade war made matters worse. The STI dropped drastically over the week. However if we look at the wave count, the drop should not be a surprise. According to the Elliott Wave Principle, Wave 2 typically drops by the Fibonacci ratio of 0.618 of Wave 1. Sometimes the retracement is 50%.
Thus we hope that next week the STI will bottom at the support level at the 50% retracement (3242.880) or at the 61.8% retracement (3210.111).