On Monday morning, the Composite Index had a technical rebound, however, sentiment of the market is still bearish and the technical rebound could not sustain. At the close, KLCI lost another 4.88 points to 904.7 points.

As indicated in A, KLCI broke the important 906 Fibonacci support. It is crucial for KLCI to return above the 906 support level within a short period, or else the next support level for KLCI would be the 895 level.

As circled by B, there is still no visible round bottom signal from the MACD histogram, therefore, the bear is still in control. (Study B)

With KLCI on a losing string of 9 consecutive days, %K of the Stochastic has now reached the 0% level. This suggests that the market is at an oversold situation thus a technical correction is expected. Nonetheless, since both lines of the Stochastic remain below the 30% level, market sentiment for the short term remains bearish. (Study C)

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