The STI dropped substantially today due to investors getting increasingly fearful over the worsening US-China relations and the premature easing of COVID-19 lockdowns in many countries. The proposed security law in Hong Kong which caused the Hang Seng to plunge by more than 5% today further impacted sentiment. The chart shows a pessimistic outlook for the STI. In this scenario Wave C (blue) has not finished, but will extend its Subwave wxy (orange) formation into a Subwave wxyxz (orange) structure. However the wave count shown last week remains a valid alternative as Minor Subwave ii (black) has not dropped below 2380.84. But investors are very nervous and we could see further downside next week.