FBMKLCI (1,775) - What's next

KLCI dropped another 28 points on Thursday and has punched through the 1792 level that I mentioned yesterday and it has another 5 points to go before dropping below the last line of defence, the lower trend line.

If it can hold above 1770 level, it is still possible that KLCI is on its sub-wave iv correction that I mentioned yesterday.

However if KLCI were to have another sharp drop tomorrow, I would say, major wave 5 as well as the mega wave (5) have ended.

Under this circumstances, the best that I can hope for is a mega wave (6) correction of around 45% to 1050 level.

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