Dow continued with its wave B rebound. I am looking at 24,800 for B and 22,750 level for C to complete the current major wave 8 pullback.
Hopefully major wave 9 will be there with a projected target of 35,000.
In a long-term chart, the 14.5% major wave 8 correction appeared to be insignificant.
If the end of major wave 9 is also the end of super wave VII, the following super wave VIII correction can be very damaging. The pullback can be as high as 50%. Be very very careful because when Dow plunges, the whole world is going to plunge together with it.
FBMKLCI (1,663)
In order for KLCI to move in tandem with the Dow, I have developed a hypothesis that the current downtrend of KLCI can be the wave (ii) of major wave 5. But one important condition is KLCI cannot drop below the low of major wave 4 of 1,532 level recorded on 24 August 2015.
With this wave count, the current wave (ii) pullback will end when Dow finishes its major wave 8 and KLCI can have its uptrend of wave (iii), (iv) and (v) of its major wave 5 while Dow is forming its major wave 9.
From its current level of 1,663 to 1,532 the drop for KLCI is going to be 7.8%. This magnitude is quite comparable to that of Dow if it were to drop from my projected wave B level of 24,800 to my projected wave C low of 22,750. The drop is about 8.2%.
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