As indicated by A, the Bollinger Bands expanded 28%, with the KLCI staying below the Bollinger Middle Band, therefore, the Bollinger Bands suggests a bearish biased signal, and the KLCI loss 13.77 points or 1.1% to close at 1283.02 points. Support for the KLCI is now at 1272 level while the resistance is at 1300 level.

As shown on the chart above, the KLCI is still resisted by the Bollinger Middle Band, and the immediate outlook for the KLCI is still bearish biased. If the Bollinger Bands should continue to expand with the KLCI below the Bollinger Middle Band, the bearish movement is expected to carry on.

As indicated by B, total market volume increased 25.5%, with volume above the 40-day VMA level. This suggests that despite the profit taking activities, there were still some bargain buying at lower price. However, technically speaking, if the market to fall with huge volume, it is a sign of higher selling pressure, thus it will dampen the market sentiment.

As indicated by C, the MACD is still falling, suggesting that the mid to longer term movement of the KLCI is now turning weaker, and unless the histogram should form a Rounding Bottom, the weakening signal is expected to continue.

In conclusion, the KLCI is pulled by the cautious investors as market across the globe are weakening as well. In short, the technical outlook for the KLCI is now negative, unless the Bollinger Bands could begin to contract, or the Stochastic breaking above 30% level, which would suggest a consolidation for the KLCI.

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