Upwards
I stated in my last blog that the STI would likely dip down and indeed it went down to 3153.6 and is now heading upwards. The STI has now fully constructed three minor subwaves to form the corrective Subwave ii (brown).
Next week we should see the STI going up strongly as it forms Subwave iii (brown). The first resistance level (the lower of the two horizontal lines) has been broken through again. We want to see the upper resistance line broken through sharply, which would confirm wave iii action.
It is now perhaps timely to slowly get back into the market. But caution should remain as markets are still very volatile.