Due to the major lost in the Dow Jones Industrial Average Index, the KLCI lost 29.86 points or 3.1% on Thursday (As indicated by A). Support for the KLCI is at the 900 psychological level while the next support level is at the 800 points, which is the technical target of the Head and Shoulders Top pattern.

As shown on the chart, the Bollinger Bands Width expanded 7%, with the KLCI staying below the Bollinger Middle Band. Therefore, if the Bollinger Bands Width should continue to expand with the KLCI remain below the Bollinger Middle Band, the immediate outlook for the KLCI would still be bearish biased, and any rebound below the Bollinger Middle Band would only be considered as technical rebound. Nevertheless, the bearish biased outlook shall continue until the Bollinger Bands Width should start contracting again.

As indicated by B, total market volume increased 56.9% despite the falling of the KLCI. The increase of volume on Thursday suggests some increase of selling pressure, in line with the T3 trading. Meanwhile, this also suggests some speculative buying.

As circled at C, the Stochastic is still staying below 30% level, which is the short term bearish region. Therefore, this suggests that the market movement for the short term is still bearish biased.

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