As indicated by A, the KLCI opened down with a gap, as the Dow Jones Industrial Average performed poorly, the KLCI ended 12.33 points or 1.4% lower. Since the KLCI failed to break above the 887 WinChart Automatic Fibonacci Retracement, the 887 level is still the resistance for the KLCI while the support is still at 800 points WinChart Automatic Fibonacci Retracement.

As shown on the chart, the Bollinger Bands Width did not really expand, but since the KLCI is still below the Bollinger Middle Band, the immediate outlook for the FBM2nd Board Index is still bearish biased. If the Bollinger Bands Width should expands with the KLCI below the Bollinger Middle Band, more downside risk for the KLCI is expected. The Bollinger Middle Band is still the dynamic resistance for the KLCI.

As indicated by B, total market volume increased 1.6%, but still below the 40-day VMA level. Again, it is usually normal to see a relatively lower volume during the KLCI consolidation. But if the KLCI should start falling with higher volume, it would suggests an increased of selling pressure, which would further dampen the market sentiment.

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

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