Dr. Doom, Marc Faber has been expecting for months a major correction. Last Thursday he was predicting a market fallout similar to what was seen in 1987. He was referring to the 'Black Monday', 19th October, 1987, when Dow dropped 22% in a single day.
Economist Nouriel Roubini has been talking about a global 'Perfect Storm' to take place in 2013.
Normura macro strategist, Bob Janjuah, in November last year, believed 'There may be one last parabolic spike higher before the S&P 500 plunged to 800'. At that time, he was predicting a spike to 1575 level before the plunge. From 1575 to 800 the drop is about 49%.
For FBMKLCI the bubble will burst ultimately but I don't think it will happen in 2013. FBMKLCI still needs time to complete its mega wave (5).
Similarly Singapore STI also needs time to complete its mega wave (3) of its wave B.
From STI's long-term chart, it appeared to me that it is forming a big A-B-C corrective wave.
Since end of August, STI has formed five mini waves. That can be the first advancing sub-wave of its major wave 5.
For Dow, I am still not very sure whether it is forming its major wave (6)
OR Dow has already formed its peak at 15,658 level last month to complete its major wave (5) and its mega wave 1. Watch out for the head and shoulders reversal pattern.
Don't forget in the 2007/2008's market plunge, Dow has its peak in October 2007 whereas FBMKLCI peaked in January 2008.
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