The STI crashed over the last two days, dropping below the two support levels as shown in the chart. It is now heading towards the third support level at 2955.68, which is the end of Wave A (blue). In a flat formation, it is common for Wave C (blue) to end at about the end of Wave A. However it is not uncommon that Wave C will end well below the end of Wave A, which the Elliott Wave Principle would call an expanded flat correction.
You can look at my previous blogs in the Archive where I have expressed the probability of the current eventuality for a number of weeks now.
Notice also to the right of the chart that Subwave abc (brown) is also a 3-3-5 expanded flat, with Subwave c (brown) now forming an impulse wave having potentially five subdivisions. Minor Subwave a (black) could be Wave i and Minor Subwave b (black) could be Wave ii. The current Minor Subwave c (black) could be Wave iii. Notice how sharp is the drop of Minor Subwave c with several gaps downwards, and the last one is especially large. This is typical of a Wave iii formation. All these indicate that there is much more downside to go.
Will the STI break through the support level at 2955.68? It appears that this is very probable. How low will it go? We’ll cross the bridge when we come to it. I will have to present the weekly chart to show support levels further down.