Dow - In wave 2 rebound.

US Market gave up about 1.1% after 90 minutes of trading

It is likely that sub-wave a of wave 2 of major wave C has completed. Sub-wave b pullback may not exceed 500 points for Dow.



I prefer to maintain that the Bursa Malaysia Industrial Index is forming the major wave C as shown below. A normal A-B-C corrective wave will bring the index to 1,800 level.


However, a contracting A-B-C as shown below will end the major wave (II) at around 2,200 level. If Dow is expected to head for 5,000, it is unlikely that Bursa Malaysia Industrial index can bottom around 2,200 level. It is too early to draw any conclusion at this moment.


But one thing is for sure, whatever surge is only a technical correction to the downtrend. It is still a long way to go to the ultimate bottom. Looking at problems in US and Europe, I don't think a bull is out there ready to run.



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