There are 2 reasons why I am not bullish on the STI
Price is below the cloud and Lagging Span is still below the cloud. Going forward, the cloud is getting thicker. Price had missed the window of least resistance to pass over the cloud. It would be more difficult for price to pass over to the other side of the cloud, where the grass is greener, now that the cloud is thicker. MACD is still bearish, which could be a hint that the current rally is corrective.
2. Elliott Wave Rule
The rally off the low seems corrective in nature. The second decline had also dropped below the high of the first rally. Going by EW’s rule, where wave 4 cannot overlap wave 1, it means this cannot be a 1-2-3-4. It is more likely a A-B-C or a Diagonal Triangle. Both are not impulsive.
STI is likely to move sideways below the cloud for some time. Even when there is a Kumo breakout, one has to be careful, as the wave structures is currently not impulsive.