Since there is no change to the three scenarios for Dow that I mentioned in my previous posting, I will not talk about the Dow in this posting.
KLCI after touching a low of 1,474 om Thursday, it has been moving higher steadily until Friday's closing of 1,504, gaining 30 points from its low. Friday's candlestick is a bullish engulfing pattern with high volume. There is a possible wave count showing the low on Thursday is the end of the wave c of wave (ii), unless wave c of (ii) has 9 waves instead of 5.
Assuming wave c of (ii) has only 5 waves, from the 1-year chart, if wave (ii) has ended on Thursday, then Friday's candlestick is the first candlestick of the wave (iii).
From its March's low of 1,219, KLCI gained 29% for its wave (i). In a normal 5-wave uptrend, the third wave is the longest wave, the current wave (iii) is expected to gain at least 29% unless the current uptrend since March is a 9-wave uptrend.
With 29% gain, the wave (iii) is expected to reach at least the 1,922 level within the next few months.
From the 25-year chart the wave (ii) looks small but possible unless its wave c has 9 waves instead of 5. Within the next few days we will know whether it is 5 waves or 9 waves. Looking at the wave form of the wave (ii), my guess is 5 waves and wave (iii) has just started. The next few days of ups will confirm the direction.
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