STI breaking the outer Fibonacci arc

On my last entry which I played with the Fibonacci arc, I mentioned that STI would be following the negative Gann gradient to reach the outer arc. I was expecting that the outer arc might some how hold the STI fall.


Fig 1 STI Daily Chart

Well, I am at least partially right, STI followed the negative gradient all the way down. What I missed is that STI broke through the outer arc and went further than 2,800, it stopped at 2,753 today. So now what?

In the first place, both RSI and Stochastic are in the second bottom, RSI is also exhibiting a potential divergence indicating STI would be reversing. So the next likely thing I would suspect is that STI clinching on to the outer arc, moving upwards.

Nevertheless, I consider this downward movement a 5-wave pattern and I suspect it has already completed its move, we should be entering B wave by now.

The support levels that I see for now is 2,751. But STI is likely to hit the 21.6% Fibonacci retracement line at 2,667. Coincidentally that would be the neckline of another potential head and shoulders.

My guess is for STI next is a counter wave B which likely to retrace back to 2,950 region.