The recovery in Europe and US are slow, there is a danger of 2nd crisis (credit issue) happen which could be more severe than the previous one. The other problem is China is overheated, they are worry of simular issue that happen in US. The China government came out with all kind of monetary policies to prevent that happen. The 3rd problem is US government (Obama) proposal, prevent the bank using the hedge funds to "goreng" properties, stocks and currencies. If this happen, the stock market will hit hard in the mid term because the money have to return to US. Of course this is a good precaution for long term to prevent another bubble burst but the investors don't like the proposal.
Likely lowest support level for KLCI
Wave 5 1308, we had done that
Wave A, on the way to 1100 - 1080
Wave B rebounded to 1160 - 1167
Wave C corrected to 920 - 900
Total correction around 30%. Previous correction is 47%
From 920 or 900 you will see a inverse H&S or W or triple bottom
Likely lowest support level for DJI
Wave 5 10729, we had done that
Wave A, on the way to 8072
Wave B rebounded to 9117
Wave C corrected to 6285
Total correction around 40%. Previous correction is 55%
From 6285 you will see a inverse H&S or W or triple bottom
