Thanks to asiachart.com, they produce very good charts. Both the charts shown above are produced by asiachart.com. The top chart is KLCI weekly and the bottom chart is KLCI Daily. Refer to the daily chart, KLCI after setting a peak of 1516 on 11/1/08, it has been moving downwards untill today with only one major rebound from begining of March to middle of May. The current downtrend is near completion. If the 3 waves down so far is wave ABC and if we have seen the worst of Dow, from the weekly chart, we are going to have another bull run. However, if the financial packages and interest rate cut by all the major countries do not reverse the direction of the world economy, and the whole world is heading towards a great depression, looking at KLCI weekly chart, the peak of 1516 is actually a major wave B with A at 262 on 1/9/1998 and the current downtrend is a major wave C heading south towards 262. This is possible but at this moment I would say unlikely. The next rebound is crucial, if the next rebound is of the same magnitude as the rebound in March-May, then there is a possibility that the down wave from 1516 so far is not ABC but 123 with the coming rebound as wave 4 follows by a sharp wave 5 that plunges together with the rest of the world.
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