Dow surged 704 points(+2.99%) on Friday over report of a drug from Gilead Sciences that appeared to be effective in Covid-19 treatment.
Dow continued with its wave B formation.
Wave C of super wave VIII is likely to drop to about 14,200 level for a 52% pullback which is about the same magnitude as that of the super wave VI (54%) and super wave II (52%). Super wave IV correction is slightly smaller at 42% but it has a much much longer duration.
Another fundamentally unbelievable but technically possible option that I have mentioned before is the mega wave (3) of the super wave VII option.
The March intra-day low of 18,213 (-38%) is about the same magnitude as that of the mega wave (2) (-36%) and mega wave (4) (-35.6%) of the super wave V.
FBMKLCI (1,407)
From its low recorded on March 19 of 1,219, KLCI has rebounded 15.4% to 1,407 on Friday. This magnitude of 15.4% is much bigger than all its previous 4 rebounds of 9.6%, 5.4%, 5.7% and 4.1% and all together 9 waves have been formed for this wave C, there is a possibility that KLCI has completed the wave C of the mega wave (6).
Is it possible that KLCI has already started its mega wave (7)?
Similar to the mega wave (3) option for Dow, fundamentally it looked absurd at this moment in view of the Covid-19 situation and the world economy that many gurus said may turn from recession to a great depression.
Even if KLCI is forming the major wave 1 of its mega wave (7), don't forget that major wave 2 can always go for a 100% retracement to retest the 1,219 level again to form a 'double bottom' reversal pattern.
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