As shown on the chart above, the KLCI is now resisted by the 1280 level, which is the highest level of the year 1997. At the moment, the KLCI is likely to have a technical correction, with the 14, 21, 31 EMA still being the dynamic support. If the KLCI could rebound from the rising dynamic support, the uptrend might resume. However, the condition is that the KLCI must break above 1280 resistance level.

Total market volume wrote another all time new high again on Thursday, with over 4.78 billion shares traded. However, most of the market activities had shifted to the 2nd board and Mesdaq market. This suggested that the market interests of the second and third liners are still in favor. Nevertheless, we still retain our cautious signal of the volume new high, as this will increase the risk of a more severe correction, in spite of the current bullish market mood. (Study B)

As circled by C, Stochastic remained above 90% level, which is the short-term over-bought region. This suggested that a technical correction is due to take place, and if Stochastic fell below 90% level, it should mark the beginning of the correction. (Study C)

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