Asian Bourses and Dow

It is rather clear by now that Hang Seng and Singapore STI are on the way to complete their respective wave 5. The charts for most of the Asian Bourses are showing a very clear 1-2-3-4 waves unlike Dow that has two possible wave counts as mentioned in my previous postings. The main concern now is after the completion of wave 5 how deep the pullback is going to be. Before talking about that it is better to find out how far the wave 5 can go. For Hang Seng as shown below, the run up to 18,888 (1/6/2009) from March 2009 low of 11,344 is an improvement of 66.5%. It consists of a long wave1 and a short wave 3. Based on Elliott Wave Principles wave 5's magnitude is either equal to that of wave 3 or slightly shorter. 20,000 is the upper limit.

Similarly for Singapore STI as shown below, the upper limit is 2,680.

For Nikkei, I should have drawn two lines forming a wedge instead of two parallel lines. The upper limit following the same logic is 10,000.
If I consider Dow for the option having the same pattern as the Asian bourses, Dow with its 1-2-3-4 wave count as shown below, its upper limit can be 9,000.

For KL Composite Index, the projection is 1,077 that is not very far away.

It is important to note that for all the above to remain valid, wave 5 must be shorter or equal to wave 3. It can never never be longer that wave 3. If in the coming days, wave 5 becomes much longer than wave 3, it is a very very bullish development. I will touch on that later. Look out for volume, a lower wave 5's volume signals ending of a major up trend, a higher wave 5's volume than that of wave 3 signals more good times in front.