Calm correction of STI

Straits Times Index seems to be supported on the previous gap near the level of 3725. But the sentiment of the market seems to be calm. Or at least that's how i felt. The volume for the drop today was not that significantly heavy. Furthermore, the bullish divergence in the A/D line seems to suggest there is some buying into weakness. So overall, there seem to be no panic as of now or perhaps in other words, this seems like a healthy correction

I am now looking to see when this correction will end. So currently, i am looking at the support lines to see where the STI's fall will be cushioned. Currently, the next strong support is the prior resistance level on the 16th of july at around 3625. The fibbonacci retracement of 23.6% also occur at this level thus due to this 2 factors, i do believe this will be an area of strong support in my opinion.

Anyway, this is the 2nd time in my blog i am charting a correction. I took a look at the previous corrections and observed that having the RSI in the oversold region is a good sign that the correction may be losing steam. The other thing to look out for will be divergences in the technical indicators.

Straits Times Index chart: