Look at Ukraine for direction.

Dow (16,168)
Due to the escalating conflicts between Russia and Ukraine, Dow dropped 0.94% or 153 points to 16,168 on Monday. The drop marked the end of mini wave 3. Can this be the end of wave b rebound ?

Or it is the end of sub-wave ii of wave (i) of major wave (1) of mega wave 2 ? The bubble has burst. ?

It is also possible that sub-wave ii has not ended yet, especially if Dow has a strong rebound on Tuesday. I am still keeping the double-tops formation for sub-wave ii as an option. A seven-waves formation as show below can pave the way for a double-tops.

FBMKLCI (1,826.46)

FBMKLCI continues to hover around 1820 level. 5-Year wave count is as shown below with possible wave (vi) option.

If the index starts to move lower from its current level, it is likely that the last high is the end of wave b.

However, if the index breaks out of the upper short-term trend line, it is a bullish mini-wave 3 of sub-wave iii of wave (v).

Option 3 is the most pessimistic major wave 4 correction. The next down is the sub-wave iii.

Major wave 4 can possibly reach a low of 1,574 for a 16% pullback.

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