On Tuesday the 8th of November 2005, the Composite Index eased 2.43 to 909.1 points. As indicated by A, KLCI is still supported by the 10 days Bollinger middle band dynamic support. Mean while, 10 days Bollinger band width contracted another 12%, suggesting that the KLCI is still at a consolidation phase. In additional, KLCI is still resisted by the T1 line.

As shown in B, total market volume for the day only stood at 2.15 million lots. Volume at this level is far below the 40 days VMA level, suggesting that the market participation was indeed very quiet. While the low market participation does not severely impact the KLCI, it is sure a major concern for the Futures market, for a low liquidity in the underlying index would generally lead to a wider spread between the KLCI and the Futures index. (Study B)

As circled in C, %K of the Stochastic failed to break above the 70% level suggesting that the short-term market sentiment is still at neutral. (Study C)

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