As indicated by A,the Bollinger Bands Width expanded 22% on Wednesday, and with the KLCI staying below the Bollinger Middle Band, the expansion of the Bollinger Bands Width suggests an increase of negative volatility. Therefore, if the Bollinger Bands Width should continue expanding, the immediate outlook for the KLCI is still bearish biased. Support for the KLCI is still at 1244 Fibonacci Retracement line, and the resistance is still at 1300 level.

As indicated by B, total market volume declined 7.% on Wednesday. Still, the volume is below the 40-day VMA level, suggests that our market participation is still low, and therefore, the KLCI is expected to stay weak provided that the market volume is still low.

As circled at C, the Stochastic remains below the 30% level, and therefore, the market movement for the short term is still bearish biased. On Wednesday, the Stochastic %K line breaks below the 10% level, which is a over-sold region, this suggests that the KLCI is slightly over-sold, and there is a chance for a technical rebound in the near term. However, if the Stochastic should remain below the 30% level after the technical rebound, the short term bearish signal is still intact.

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