Happy New Year

Dow (28,538)

Dow ended the last trading day of 2019 at 28,538. For the whole of 2019, it gained 5,211 points or 22.33% despite of the US-China trade war.

By accepting the low of 21,792 on 24 December 2018 as the end of the major wave 8, even though there was only 3 waves for the wave C instead of 5 waves, Dow is expected to continue with the major wave 9 formation in 2020 to a possible high of 34,000 level.

If mega wave VII has only 9 waves, Dow is likely to start its mega wave VIII's 50% correction in late 2020 or early 2021. This major wave VIII correction is likely to take a few years to complete.

But if mega wave VII is going to have more than 9 waves, the next possible turning points is at the end of major wave 13 in 3 to 4 years time. It is safer to assume that mega wave VII has only 9 waves.

FBMKLCI (1,588)

KLCI is either at its wave (iv) formation if it can continue to move higher during first half of 2020.

But if KLCI is unable to move higher in the next few weeks, it will continue its 2019's pattern of movement to zig-zag lower and lower with sub-wave vii, viii and ix to complete the wave (iii) before a stronger wave (iv) rebound.

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