Continued from STI Analysis — the next peak and trough ? (XII)

As mentioned previously STI is currently doing an Intermediate degree Wave 5 Minor degree Wave 2 correction.  As it is dealing with Minor degree level, have to look at STI on hourly basis to really see the correction pattern.

The above chart clearly showed that STI has developed into an Expanded Flat pattern.  Expanded Flat pattern or rather Flat pattern in general is a 3-3-5 structure and what STI is now is at the “5” segment meaning doing a 5-wave impulse.  Furthermore, the 5th wave is an ending diagonal rather than a straight impulse.  The ending diagonal is yet to fully run its course.  That is to say there could be further downside to STI and potentially it could end up around 3,500 level, the 38.2% Fibonacci Retracement level.  It is too …