Watching only Dow

Dow (26,412)

If Dow is forming wave D, it has so far completed its wave i and ii of D. And now it has completed its mini wave 1 and 2 of iii of D.

It has started the mini wave 3 of iii on Friday with an impressive volume of 369 millions which is 65% higher than the last 10 days average of 223 millions.

The volume caught me by surprise as I was expecting the volume to stay low or to shrink as Dow approaching the end of its wave D. The Friday volume not only exceeded the last 10 days average, it also exceeded the January average daily volume of 341 millions when Dow started to form the wave i of D. In February the average daily volume dropped to 265 millions when Dow was on the second half of its wave i.

If last Friday volume of 369 millions is a 'one day affair', that means the daily volume is going to shrink next week and the following weeks, I expect Dow to end its wave D at around 27,000 level and it will be followed by wave E with a 20% or more pullback to 21,000 level unless Dow is going to have a 'failure' E.

But if Dow can maintain its daily average volume at about 400 million as the mini wave 3 of iii progresses, very likely this mini wave 3 is not the mini wave 3 of iii of D but rather it is the mini wave 3 of iii of (i) of its major wave 9. Dow has ended its major wave 8 in December. Dow is on its way to punch through its ceiling of 27,000 with momentum.

I am keeping my fingers crossed.

FBMKLCI (1,630)

If Dow is on its major wave 9 and it is going to punch through its ceiling, it is correct that KLCI is about to complete its mega wave (6). Mega wave (7) will start once wave C of (6) is completed

KLCI started to form its mini wave v last week. It started with a 'doji' on Monday followed by two small drops on Tuesday and Wednesday and a sharp 15 points drop on Thursday. Friday rebound is a technical reaction to Thursday's drop.

I shall keep my eyes on Dow and its volume in the next two weeks.

.