As indicated by A, the KLCI had its intra-day low reaching 1538.95 points (-15.84) but started to regain some of its losses after 9:30 am, and closing the day at 1545.10 points, losing 9.75 points or 0.63%. Support for the KLCI remains at 1540 while the 14, 21, 31 EMA is still serving as the dynamic resistance.

As indicated by B, total market volume increased 28.94%, with volume above the 40-day volume moving average. However, with the numbers of losers doubling the winners, coupled with the falling of the KLCI, the higher volume actually implies a stronger selling pressure.

As indicated by C, the Stochastic fell below 30%, entering the short term bearish territory again. If the Stochastic should stay below 30%, the short term movement of the KLCI is expected to be weak.

In conclusion, the technical outlook for the KLCI remains weak, but with the KLCI still above 1540, the KLCI is not yet developing into a more serious downtrend. If the KLCI should break below 1540, then the next lower target would be a 1500 psychological level.

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