I have upgraded the title of my blog from “Possible Bottom” to “Probable Bottom”. The STI found support midway between the indicated support levels (blue lines). However there has been no conviction, with the STI drifting sideways these few days. The risk that the STI will drop to 3200 is still present.
The confirming wave action will be when the STI goes up above the top of Subwave b (brown) at 3341.64, which is about 55 points away. You can afford to be patient and wait before you jump into the market. If the wave count is correct, the uptrend will be Wave 5 (red) which will rise above the top of Wave 3 (red) at 3611.69. This is about 325 points away. Giving up 55 points as insurance will be worth it.
The correction has been over two months. Let us hope that we have seen a real bottom.