For Singapore STI, if its wave count is similar to Hang Seng's 1-2-3-4 formation, STI will have to break its upper trendline at 2,270 before it can proceed to complete the fifth wave at around 2,680
The point here is, if Hang Seng and STI are going to continue their uptrends in the next one or two weeks, during this period KLCI should not have any major pull back. 
From a peak of about Rm 10.00 in December 2007, the stock price dropped to about Rm 3.00 due to the world financial crisis started from the US. The bottom of the downtrend was formed in January 2009. Since then the stock price has been moving up steadily.
The stock is forming a double bottoms pattern as shown above. It has been trying to break the neckline for the last three weeks.
From the wave count shown above, if it can punch through the neckline, the powerful wave vii will be the next wave, failure which it will remain in its consolidation phase of a-b-c or a-b-c-d-e. Chances is quite high that it will break its neckline for a wave vii run up. Minimum target price is Rm 6.00
and the option of sub-waves 1-2-3-4-5 to form wave (I) as shown below.
However, the Nasdaq chart below shows only the possible option of sub-waves 1-2-3-4-5 to form wave (I). The technical indicators also indicated the completion of one single wave since March.
S&P 500 and its technical indicators as shown below, shows a similar possible wave count to that of Nasdaq. If Dow, Nasdaq and S&P have to be the same ultimately, It is likely that Dow will go for the same wave count as Nasdaq and S&P of having just completed its major wave (I) and is currently in its wave (II) consolidation phase. In the last 10 days, 3 sub-waves have been completed. It is likely that the consolidation will continue sideway for at least another two weeks.
I have observed that most of Asian bourses have a much stronger reaction to the April's A/H1N1 outbreak than the US market. Because of that most of the charts for Asian bourses except Shanghai composite, are showing a 4 waves formation. Nikkie of Japan is showing such a formation as shown below.
Shanghai Composite Index (SSEC) as shown below, has been moving in its own way and pattern since its November 2008's low. It has completed its major waves (I)-(II) and waves 1-2 and sub-waves i-ii-iii. Currently it is in sub-wave iv. It is only half-way through its major wave (III)
Hong Kong's Hang Seng Index (HSI) is influenced partly by the US market and partly by the China market. So far the HSI has completed its major wave (I)-(II) and waves 1-2-3 and is currently in wave 4. It needs one more up to complete wave 5 of the major wave (III)
Singapore STI followed the US more than China. There are two possibilities for STI. Same as the Dow, it has its low in March 2009. For option 1 as shown below, it has completed wave 1-2 and sub-waves i-ii. Currently it is in sub-wave iii
For option 2, the count is wave 1-2-3 and currently in wave 4. In this option, STI is lagging behind the Dow by one wave, the fifth wave.
For KL composite Index, because of the political situation and the off and on supports given to the market by the government's investmet institutions, its wave count is very much different from those mentioned above. It has its low in December as discussed in my older posts. Since then it has completed major wave (I)-(II) followed by a series of smaller waves in an uptrend direction as shown. KLCI's reaction to the A/H1N1 is not noticeable from the chart. As long as there is no serious swing in other major bourses mentioned above, KLCI should be able to continue its current trend. Based on Fibonacci ratio of 2.618 a possible intermediate top for KLCI is 1077 as has been discussed previously. If it can break 1077 and moves higher, Fibonacci ratio of 3.618 may have to be used.
For the US market I have suggested a further 2 weeks of sideway consolidation early is based on the observation that most of the Asian bourses have not finished their respective uptrend movement as shown above. These bourses need another one to two weeks to complete the remaining waves.
Refer to the chart below, wave count since March 2009 bottom is still the same. Since then the wave form has completed waves 3-4-5. There are two possibilities at this point. It is either going for 9 waves with wave 6 completed and is currently in sub-waves 'i' and 'ii' of wave 7 as shown below or with wave 5 as the end of higher degree wave (I) followed by sub-waves a-b-c to form wave (II). It has completed sub-wave a (at point 6 location) and is forming i-ii-iii of sub-wave b. Under this a-b-c scenario, the b can go to about 55 sen at best before moving down to form c at around 42 or 43 sen.
Recent heights at end of wave (I) and wave b rebound are the same value of Rm2.57. It will have to break Rm 2.57 before breaking Rm 2.60, the neck-line for the inverted head and shoulders
The simplified balance sheet is very solid. Look at the Rm 2.794 billion cash and the Rm 8,355 billion reserve. The company has been buying back its own shares from the open market since July 2007 when its price was Rm 4.20. The item under "Treasury Shares" of Rm 627 million is the cost for 182 million treasury shares. The average purchase price is Rm 3.44 which is much higher than the Thurseday closing price of Rm 2.42.
DPM said yesterday government might limit the number of subjects taken by student in the SPM for fairer PSD scholarship selection. I am very stupid, can somebody tell me why by limiting all the student to take only 9 subjects or less can make PSD scholarship award fairer. To me, if the Government considered students with 7A1 should be given scholarship, then all students with 7A1 and above be given the scholarships, simple only. If there are other factors, make them known to everybody, be transparent. Of course other than this NEP has to be taken into consideration, nobody is questioning NEP.
For the two possibilities that I have discussed in my May 19 post, the (I)-(II)-(III)-(IV) option remains the same except the wave a-b-c for wave(IV) takes a slightly different form but the magnitude and duration are almost the same as the a-b-c for (II)
For the other 1-2-3-4-5-6-7 option that I have mentioned, it is no more valid. It appears that that the major (I) has only 5 waves instead of 9. Dow is forming (II) at the moment. For this option the wave c of (II) can even go slightly below the lower trendline.
Look at the indicators below, both the options have even chances.
