FMBKLCI plunged in tandem with the Dow in 2008. It dropped 45% within 9 months from a high of 1516 on 11/1/08 (mega wave (3)) to 829 on 29/10/08 ( mega wave (4)).
From its October 2008's low of 829 to today's closing price of 1781, the index has gained 115% within
56 months. It is interesting to note that during the first 26 months KLCI gained 90% and in the remaining 30 months, KLCI gained an additional 25% only.
KLCI gained 12 points to 1781 today with a gap. If the index can break the 1800 level in the next few days with high volume, it is the mini-wave 3 of sub-wave iii of wave (iii) of major wave 3, and that can be the signal that the index may be entering the euphoric phase.
A possible boom-bust cycle
Love your forest.
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