Dow and FBMKLCI

Dow - No crash scenario
Dow is forming the wave c of major wave (6). Possible low at 15,000 level.

Dow - The assets bubble has burst
Dow is forming the sub-wave iii of wave (i) of major wave (1) of mega wave 2. The historical closing high of 16,576 on 31st December 2013 marked the end of the bull-run.

FBMKLCI - Moved in tandem with Dow (no crash)
Forming the major wave 4 with about 15% pullback to 1600 level.

FBMKLCI - The assets bubble has burst
The index will form a smaller major wave 4 with a failure major wave 5.

Watch out for the 'Head and Shoulders' reversal pattern

If the index started to move lower from its current level, watch out for the 'Head and Shoulders' reversal pattern. The neckline is at 1780 level.


.