As circled at A, the KLCI opened gap down on Tuesday, closing the day 7.82 points lower to 868.74 points. With the KLCI below the 20-Bollinger Lower Band, this suggests that the KLCI is now slightly over-sold. Therefore, there is a chance for a pull-back effect in the near future.

Since the KLCI has broken below the 869 WinChart Automatic Fibonacci Retracement, the 869 is now the resistance, while the support is at 853 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume declined 13.6% on Tuesday, with volume below the 40-day VMA level. This shows that the market participation is relatively lower again. Therefore, with volume below the 40-day VMA level, the KLCI is less likely to regain its strength.

As circled at C, the Stochastic is still below 30% level, suggesting the short term movement for the KLCI is still bearish biased. If the Stochastic should rebound and break above 30% level, it would be a signal suggesting a beginning of a technical rebound.

With KLCI below the 20-day Bollinger Lower Band, there is a chance of a pullback effect and the first target of the pull-back effect is the 10-day Bollinger Middle Band. Despite a chance of a pullback, the immediate outlook for the KLCI is still bearish biased.

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