Due to the Asian Pacific markets ending lower, coupled with the worry of the weakening US economy, the KLCI ended lower on Tuesday. As indicated by A, the KLCI lost 16.40 points or 1.4%, and temporary supported by the downtrend channel lower line. Support for the KLCI is still seen at 1120 WinChart Automatic Fibonacci Retracement line.

As shown on the chart, the Bollinger Middle Band remains the immediate dynamic resistance and the other resistance is at 1164 WinChart Automatic Fibonacci Retracement line. Nevertheless, the Bollinger Bands Width contracted another 13% on Tuesday, suggesting that the KLCI is still consolidating. Since the KLCI is still staying below the Bollinger Middle Band, the immediate outlook for the KLCI is still negative biased.

As indicated by B, total market volume increased 41.8%, despite the KLCI ended lower. This could suggests some bargain buying activities, which is also some selling pressure. At the moment, it is still unclear. Nevertheless, if the KLCI should regain its strength, volume above the 40-day VMA level is a crucial criteria.

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

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