FBMKLCI dropped 22 points (-1.25%) today as investors reacted to anxiously to the Fitch's downgrading Malaysia's sovereign credit rating outlook from 'Stable' to 'Negative'.
To read the view of others on Fitch's move, click ' Market Weakness '.
My long-term reading on FBMKLCI remains the same. Since the 1998's low, the index has completed its mega wave (1), (2), (3) and (4) and major wave 1 and 2 as shown below.
From the 5-year chart as shown below, major wave 1-2 and wave (i)-(ii) remain the same.
The wave count from May until today will have to be changed. Before today's drop, I have considered the current pullback as a mini wave 4 correction. With today's 22 points drop, the magnitude is too big to be a mini wave 4. Without this mini wave 4, the earlier run-up since end of June has only three mini waves, 1,2 and 3 as shown, the run-up has to be wave b of wave (iv) and the current down is the wave c of wave (iv).
This wave c, in an expanding a-b-c wave (iv), it may drop to 1700 level, another 4% to go.
Rapeseed Field
If you visit Luoping on Eastern Yunan in China during spring, this is what you will see, miles and miles of rapeseed flowers. The best time to visit is from mid February to April.
In UK, Hambledon, Hampshire has picturesque landscape of rapeseed fields dotted with traditional English cottages.
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