On Wednesday, the KLCI opened gap down after the over-night Dow Jones Industrial Average fell below the 10,000 mark. As indicated by A, the KLCI is supported by the 1309 WinChart Automatic Fibonacci Retracement, and the KLCI managed to rebound and closed the opening gap. Resistance for the KLCI remains at 1325 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, with the KLCI breaking below the Bollinger Middle Band, the immediate technical outlook is now turning negative, but fortunately, the Bollinger Bands is still contracting, as it suggests that the KLCI is still consolidating while not forming a downtrend yet.

As indicated by B, total market volume declined 24%, with volume below the 40-day VMA level, suggesting that the market is indeed quiet, and it also reflects the low investors' confidence.

As indicated by C, the Stochastic breaks below 50%, suggesting that the short term movement of the KLCI is weakening. If the Stochastic should break below 30%, it would have entered the short term bearish territory, and the market movement for the short term is expected to stay weak.

In conclusion, external issues continue to affect the KLCI performance. Together with the KLCI below the Bollinger Middle Band, the technical outlook is beginning to turn negative.

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