FBMKLCI - Going North or Going South ?

Crude Oil WTI (US$45.16)

Crude oil may have another run-up to complete its wave a.

Dow (18,146)

Dow moved above 18,000 level on Friday. Hopefully this is the wave (iii) of (7).

FBMKLCI (1,644)

At this stage I still prefer to assume that KLCI has completed its Super wave (I) with a failure major wave 5 as shown below.

Under this scenario, Friday's drop is likely to be the starting of sub-wave iii going south.

However if KLCI can move higher to 1,670 level in the next few days to form five up-trend waves, it is possible that this is the work of our Government in preparation for the next general election.

With the Government's all out pushing, KLCI might be able to continue with its major wave 5 formation.

The crucial point here is whether KLCI can go higher to 1,670 in the next few days or it is going to continue with last Friday's down-trend and heading south with a one-way ticket.