Composite Index continued its technical correction on Friday, the 5th of August. KLCI is still supported by the 940 level as well as the 10 days Bollinger Middle Band dynamic support. 10 days Bollinger Bands contracted 28%, indicating that the currently volatility of KLCI is low thus KLCI consolidate. (Study A)

Total market volume for the day decreased another 21.2%, stood at 4.94 million lots, which is right at the 40 days VMA level. While it is considered normal for volume to decrease during a consolidation period, it is essential for volume to be above the 40 days VMA level during a rally. (Study B)

MACD triggered a sell signal with the MACD line crossing below the trigger line. This signal suggest the weakness of KLCI which could lead to an end of the rally for KLCI if the KLCI breaks below the 940 psychological level. However, readers are advised that when the Bollinger Band is contracting, significance of the signal is slightly reduced. In our opinion, it is best to confirm the sell signal when KLCI break below the 940 support. (Study C)

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