Dow - Major wave (7) is going for 9 waves.

Dow (19,756)

Dow has a strong breakout on last Wednesday and proceeded to move higher on Thursday and Friday.

By Friday the magnitude of wave (v) has exceeded the magnitude of wave (iii). If I go by the Elliott wave principle that the magnitude of the third impulse wave cannot be the shortest impulse wave, it means the third impulse wave contains extensions, and the current wave (v) can be read as the sub-wave iii of (iii). The short wave (iii) is the sub-wave i of (iii). That also means the major wave (7) is going to have 9 waves.

FBMKLCI (1,641)

KLCI continued with its wave E of 4 correction.

I expect KLCI to move lower for its last down leg to complete its wave E and its major wave 4 as shown above, unless it has a failure E as shown below where sub-wave iv and sub-wave v of E are missing. Then the gap that was formed by last Thursday's candlestick is a run-away gap. Under this condition the KLCI will continue to move higher from its current level.

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