As the Dow Jones Industrial Average rebounded nearly 380 points, the KLCI opened higher on Wednesday, and had its daily high up to 863.73 points. However, the KLCI failed to sustain its early gain and started giving back all its gain to close at 850.37 points, down 4.88 points. Support for the KLCI is now at 833 WinChart Automatic Fibonacci Retracement while the resistance is at 853 WinChart Automatic Fibonacci Retracement. (Study A)

As shown on the chart above, the Bollinger Bands Width expanded another 12%, with the KLCI remains below the Bollinger Middle Band. Therefore, the immediate outlook for the KLCI is still bearish biased, until the Bollinger Bands Width should contract.

As indicated by B, total market volume increased 0.8%, and getting closer to the 40-day VMA level. If market volume should break above the 40-day VMA level, it would suggests that the overall market participation is relatively high, thus likely to lift the market sentiment. However, if the KLCI should continue falling with relatively higher volume, it would imply an increased of selling pressure.

As circled at C, the Stochastic remained below 10% level, which is a short term over-sold signal. Therefore, the short term technical rebound is still due to take place. Still, the Stochastic has to break above 30% level, in order to signal a beginning of a technical rebound.

Despite a chance of a technical rebound as suggested by the Stochastic, the priority of the analysis should be based on the primary indicators such as the Bollinger Bands. Therefore, with the Bollinger Bands Width still expanding, the bearish biased movement of the KLCI is likely to continue.

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