A downgrade could trigger a sell-off in the country's equity and bond markets, and add pressure on the ringgit.
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KLCI dropped 13 points today to close at 1,614 level.
Since the 1,620 level is broken, I have to forget about the 15 to 20 points mini wave 1-2 rebound that I have mentioned previously. Sub-wave iii may take the form of the sub wave i as shown above.
Sub-wave i dropped about 110 points from 1,730 to 1,620. If sub-wave iii has the same magnitude as sub-wave i, it is possible that sub-wave iii can drop to 1,550 level.