The major correction caused by the US tsunami has required a rehash of the wave counts. The chart above shows the revised wave counts, with all component waves marked out. The whole structure consists of corrective waves. You can see from the monthly chart below that the STI has been going sideways all along since the crash of 2008, so there have been no motive waves.
The monthly chart gives the impression that there is still quite a bit of downside potential. Hopefully there is support as indicated by the blue horizontal line. For the shorter term, the hourly chart below shows that the current correction is not complete. While Subwave iv (brown) may go up some more, there is a need to form Subwave v (brown) downwards.
Investors worldwide have been shocked by the extent of the drop in US markets which has caused repercussions everywhere. Tonight the US futures are pointing to a rebound. But the big question is what will happen next. Many are saying it is just a correction. A few are saying it is the start of a bear market.