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Composite Index ended lower on Thursday, losing 1.78 points to 919.78 points. As shown on the chart above, the KLCI has violated the up trend channel marginally and even breached below the 920 support with an intra-day low of 916.7 points.

At the moment, support for the KLCI is at 916, 920, and the 31 days EMA. If these supports failed to hold the KLCI, market would be heading for the next support at 900 psychological level. Mean while, multiple exponential moving averages begin to descend with the KLCI dropped below the 14, and 21 days MA. This is a cautious signal for if the MA continue to fall, sentiment of the KLCI for the mid to long run would be bearish.

In spite of the sell down activities on Thursday, total market volume, on the other hand, remained low at 524 million shares. Although, historically, the KLCI could trend down with low volume, the relatively low volume on Thursday did not really trigger any panic sell down of the market as a whole. (Study B)

As indicated by C, %K of the Stochastic rebounded from below the 10% level, and now situated at the short-term bearish region. %D remained in the neutral region, giving no confirmation of the %K signal. Nonetheless, provided the %K maintain below the 30% level, market sentiment for the short-term is expected to be bearish bias. (Study C)

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