Dow - Where are we now

Dow (16,380)

Dow added 263 points (+1.63%) on Friday. Magnitude wise, it looks like a normal rebound after many days of drop. The two possible wave counts I mentioned early still hold.

Option 1- Dow ended its wave (ix) with an 'Ending diagonal triangles' to complete its Major wave (5) or mega wave 1 has ended.

Friday's rebound is just a technical rebound, its mini wave 4, can not last. Dow will continue with its mini wave 5 next week.

Option 2 - Major wave (5) or mega wave 1 are not yet ended. Dow has just completed its wave (xii). The next up will be its wave (xiii) to complete its major wave (5) or mega wave 1.

 

Under this scenario, Dow will continue its Friday's surge to move higher next week. Hopefully Dow's next week movement can tell us which option can be eliminated.

 

FBMKLCI (1,788)

Option 1 - FBMKLCI has to move in tandem with Dow generally. Inline with Dow's Option 1, last Friday rebound is the mini wave iv rebound. It will continue to move lower next week together with Dow to form its mini wave v.

 

Option 2 - Similar to the Option 2 of Dow, FBMKLCI has ended the wave c of its major wave 4 and will move higher in tandem with Dow to form its wave d of 4.

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