Dow - It is Option 2

Dow dropped about 100 points on Thursday morning session

The unlikely option that I mentioned three days ago turned out to be the one. Since the last low of 10,655 on October 3, Dow has moved up about 900 points. Last August high of 11,613 can be the resistance to the current sub-wave a run-up. The next sub-wave b pullback may not go below 11,000 before the sub-wave c surge to complete the wave 2 by early November, if wave 2 is a simple a-b-c corrective wave.



I still like to maintain that the Bursa Malaysia Industrial Index is in the major wave C pullback. A normal A-B-C will bring the Index to around 1,800 level. However a contracting A-B-C will end the major C at around 2,200 level.


Based on the above wave count, the Bursa Malaysia Industrial Index is currently on its sub-wave iv of wave 3 rebound. Technically sub-wave iv should not go higher than the sub-wave i's low of 2660. Since wave 2 is a complex expanding a-b-c-d-e wave, wave 4 can be a simple sharp a-b-c pullback. To pave the way for a sharp wave 4 rebound, it is likely that the coming sub-wave v pullback can be quite sharp.



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