Bursa Malaysia - My optimistic wave count may end within a day or two

Bursa Malaysia has another bad day. FBMKLCI dropped 21 points (-1.20%) to 1775 and Industrial Index ended the day at 3154, dropping 58 points (-1.82%). Further drop from their respective level may end my optimistic wave counts for both of them.

FBMKLCI (1,775)

My last optimistic wave count for KLCI is as shown below assuming that KLCI is forming its major wave 5 with hopes of moving into uncharted territory

With today's 21 points drop, KLCI has moved very close to the lower trend line.

With another sharp drop tomorrow, I have no other option except to accept the fact that major wave 5 has ended. Next to expect is either a mega wave (6) formation or a higher degree super wave II formation.

Industrial Index (3,154)

At crucial moment, I always like to refer to the Industrial index for confirmation of the major trend for the market. Industrial Index is the oldest index for Kuala Lumpur Stock Exchange, the former name of Bursa Malaysia. The index was known as the 'Straits Times Industrial Index' in the 60's and early 70's. In 1974 it was renamed the 'New Straits Times Industrial Index'.

My long term wave count for the Industrial Index is slightly different from that of the KLCI. My optimistic option for the Industrial Index is still quite inline with that of the KLCI.

At this moment I am assuming that the Industrial Index is at the wave (ii) of its major wave 5.

With today's 58 points drop, the Industrial Index is moving very close to the acceptable 100% retracement for its wave (ii), only 61 points away.

Once it drops below the 3093 level, I will have to abandon this optimistic wave count. Similar to KLCI, there is this 'double top' formation. Just pray hard that the Industrial Index can hold above the 3093 level.

.