The STI cannot resist the Elliott Wave Principle and has retraced down to the Fibonacci 61.8% level as shown in the chart. As previously stated in my blog, this is the typical retracement for a wave ii. Now the question is whether it would drop to the next level at a 78.6% retracement, which is unusual but possible. The bad signs are that the STI gapped down drastically and closed today in the lower half of the intraday range.
Do not rush out to add to your portfolio yet, as the downward pressure is still there. However the US stock index futures are up at the time of writing this. If the US market is up tonight, it could boost the STI tomorrow. There is a tendency for the STI to go upwards to close the gap formed today, which will not necessarily mean that the correction is over.