FBMKLCI (1,757) - Mini wave 3 has started

KLCI dropped to a low of 1,752 before a last minute rebound to close at 1,757 on Wednesday. It appeared to me that the short term technical rebound has ended and KLCI has started its mini wave 3.

As I have mentioned in my previous postings that this is going to be a 15% correction and I expect the KLCI to end its wave C near 1,520 level to complete the mega wave (6) by around the middle of 2018, say another 8 months to go to complete the correction.

From the current level of  1,757 to 1,520 the drop is 237 points over the next 8 months. That will translate into about 29 points a month or about 7 points a week. Very likely the market is going to maintain its current half-death behaviour for many more months until mega wave (6) is completed.

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