Bottom?
On Tuesday 30 November the STI dropped to 3041.29 and has recovered somewhat since. Readers who follow my blog closely will recall that in my 5 Nov blog I stated that “One possibility is that the STI will drop to the end of Wave 4 (red), at around 3037.” (You can find this blog in my Blog Archive.) This is a common observation by Elliott Wave Principle practitioners of the correction that follows the completion of a major fifth wave. In this occasion it has proven to be accurate to 0.13%.
We have seen an uptrend in the last three days. While we can be optimistic, there is a small probability that the STI can drop down again. Thus the Wave C (red) will not be a simple abc wave (black) but would be a zigzag consisting of two abc waves linked by an x wave. And the second abc wave could be as long as the first abc wave. This will be a nightmare.
I would rather not dwell on this possibility. Instead I hope that the uptrend will continue next week and beyond.