TheKLCI retreated 14.44 points on Monday to close at 1377.13 points. As indicated by A, the KLCI was supported by the 1368 immediate support level as well as the 14, 21, 31 EMA dynamic support. Therefore, if the KLCI should rebound from the rising dynamic support, the uptrend is expected to resume. (Study A)

Total market volume declined another 9.4% on Monday, while still staying above the 40-day VMA level. It is usually normal to have a lower volume during a correction of a consolidation. However, if the KLCI should resume its uptrend, volume must increase and continue staying above the 40-day VMA level. (Study B)

After the Stochastic showed a short term over-bought signal on Friday , the KLCI indeed had a correction on Monday. As circled at C, the Stochastic %K line falls below the 70% level, but the %D line remains higher above the 70% level. Therefore, the Stochastic is still showing a short term bullish biased signal. (Study C)

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