So far so good, crude oil continues with its major wave 4 formation. This is a monthly chart, one candlestick is one month. I am expecting at a a-b-c formation for this major wave 4. It may take 12 to 15 months to reach US$80.00.
Dow (17,873)
As I have mentioned previously, very likely Dow is forming its major wave (7). I am expecting more record breaking when wave (iii) starts. Dow may take another one to two weeks to complete its wave (ii).
However, if Dow failed to move higher in June, it is possible that major wave (5) marked the end of mega wave (1) and since May 2015, Dow has been forming its mega wave (2). If this is the case, wave C of (2) may bring Dow to 15,000 level or below.
FBMKLCI (1,637)
KLCI has been moving side way for too long ( because of 1MDB?) and the present wave form makes me a little uncomfortable. Is KLCI on course for its major wave 5 ? Or is it something else ?
Is it possible that the uptrend since 2009 has ended with a failure major wave 5 (a small and short 5) as shown below ? And KLCI is in its super wave (II) correction ?
Looking at the 5-year chart as shown below, if the 5-wave run-up from December 2014 to April 2015 is indeed a failure major wave 5, then the August 2015 low could be the wave (i) of super wave (II). The rebound from August 2015 to April 2016 could be the wave (ii) of (II).
From the 1-year chart, it is possible to have a a-b-c wave count for this wave (ii) of (II). Wave (ii) ended in April 2016 followed by 5 waves down i-ii-iii-iv-v to complete the sub-wave i.
If the rebound since 16th May 2016 is the sub-wave ii rebound, then the next down is going to be the sub-wave iii of wave (iii) plunge. It will break the 1620 level and then the 1600 level. Be very very careful, it is going to be fast and furious and can be very damaging, if this failure major wave 5 scenario is found to be the correct wave count.
Watch out for more damaging news on 1MDB from oversea.
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