On Monday, the KLCI ended another 11.26 points lower to 1195.41 points. As indicated by A, the 14, 21, 31 EMA dynamic resistance remains falling. This shows that the KLCI is still trending down, and provided that the dynamic resistance is still intact, the outlook for the KLCI is still bearish biased. Support for the KLCI is seen at the 1157 level.

As indicated by B, total market volume on Monday fell 25%, and obviously below the 40-day VMA level. This is again a sign of lackluster market participation. In other words, the inflow of fresh capital in our market is indeed low; therefore, the KLCI is likely stay weak.

As circled at C, the Stochastic is still showing a short term bearish signal. As long as the Stochastic is still below the 30% level, the market movement for the short term is still bearish biased.

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