Pessimism
Last week I presented the optimistic outlook for the STI. This week I’m presenting the pessimistic wave count. The STI has dropped further and is likely to test the 50% retracement level next week. Worse still, it could drop down to the 61.8% retracement which is typical for a second wave. The wave structure shows that Subwave ii (red) could be a flat formed by the Minor Subwaves a, b and c.