Dow and FBMKLCI

Dow

Dow is either forming its mini-wave 5, which can be completed by end of January or early February

Or it is forming the wave b of its mini-wave 4. Under this possibility, mini-wave 5 can only be completed by mid February.

For both cases, mini-wave 5 is likely to reach 17,100 level. If mini-wave 5 is the end of sub-wave iii, the following sub-wave iv may have a 5% or about 1,000 points pullback as shown in the following chart.

For the above cases where sub-wave iii has only 5 mini-waves, sub-wave v may end by late April or early May. And if that is also the end of wave (ix) and major wave (5) and the mega wave 1 as shown above, the worst case scenario for mega wave 2 correction is the 100% pullback to the 6,547 level for Dow. The bubble has burst.

However, if sub-wave iii has 9 mini-waves as shown below, the mini-wave 6 correction is likely to be about 400 points to be followed by mini-wave 7,8 and 9, the starting of mega wave 2 correction may be postponed to July or August.

FBMKLCI

Sub-wave iv correction may be completed by next week to be followed by sub-wave v of wave (v). The next question is whether wave (v) has 5 or 9 sub-waves.

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