Wave 3 - to feel like a crash

Wall Street's slump continued as last night Dow lost another 207pts. Dow has fallen about 7% from its peak. Dow should continue to ease to the H&S target of 12,400 first but wave 3 could take it down to even 12,000. So be prepared for more downside.

STI and KLCI has also fallen about 10% or 7% respectively from their peaks. The downtrend is expected to continue. KLCI = 1,200 and STI = 3,100. So, maintain sell on strength.