Downside Pressure
As expected, the STI plunged this past week. As seen in the chart, it has not yet dropped beyond the 38.2% retracement line, not to mention the 50% and 61.8% lines. There appears to be some support at the 38.2% line, so the STI could drop to about 3240 and bounce up. The chart shows the channel in orange within which the STI has been travelling down. If the STI breaks up above the channel it would be a sign of relief from the downside pressure.