FBMKLCI - Revised wave count

KLCI dropped 15 points to go below the crucial 1,670 level as well as the top of sub-wave i.

From the bottom in June there are only three waves up, it has to be a corrective wave. I need to go back to the long-term chart to recount the waves.

Mega waves (1)-(2)-(3)-(4) and major waves 1-2-3 can be maintained. Major wave 4 and waves (i)-(ii) need modification.

When I am in doubt, I always refer to the Industrial Index for confirmation.

Looking at the Industrial Index, there is a possibility that since the completion of major wave 3 in April 2015, the Industrial Index has not yet completed its major wave 4. The current downwards movement is possibly the wave (v) of c of 4.

Based on the above, I have revised my wave count for KLCI as shown below.

I shall take the current down as the wave c of 4. It may end somewhere near 1,550 level, another 110 points or 6.6% to go. If 1,600 can hold, then we will have an earlier rebound.