In a sea of red

A black Friday for the equity markets when investors dumped risky assets (stocks) to go into safe-heaven assets such as US treasuries, Japanese Government bonds, German bonds and gold.

Hang Seng lost almost 1,200 points or 5.8% at its low. It recouped half of its losses at the close.

According to analysts:
- Global economic growth is likely to slow down.
- Possible recessions in Britain and the EU.
- Possible slower US economic growth.
- Less demand for oil and other commodities except gold.
- More volatility in equities, currency and bonds.

Click 'Brexit's impact on Malaysians' for more.

A crucial question is whether Brexit would trigger a domino effect - more nations to exit EU.

Dow (17,400)

My reading for Dow remained the same except that it is a higher degree wave (ii) correction instead of sub-wave ii correction as mentioned previously.

FBMKLCI (1,634)

First we have 1MDB and now Brexit. KLCI dropped to a low of 1611 (-28 points) before recovering 23 points to close at 1634, dropping only 6 points.

Just to be on the safe side, I preferred to monitor KLCI along the possibility that it has already completed its long-term super wave (I) with a failure major wave 5 (as shown below) until this possibility is proven wrong.