Global markets continue to slide on Monday. The drop varies from 1% to 2% except China's Shanghai market that dropped 5.3%. Dow currently has dropped 230 points (1.5%) after 2 hours of trading. Have the asset bubbles that were created by excessive money printing and low interest rates burst ? Personally I don't think so. Ultimately the bubbles will burst but not now.
Dow is forming its wave (viii) currently. It is expected to drop to around 14,300 level before the next wave (ix) starts to run to above 16,000 level to complete the major wave (5), which is also a possible ending point for mega wave 1. Wave (ix) will need a few months to form.
However if Dow continues to drop below 14300 level in the next few days, its final support will be the lower red trend line.
Bursa Malaysia
KLCI is having its wave (iv) consolidation. Hopefully it can stop around 1700 level.
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