On Friday, the KLCI gap down, losing 12.79 points or 0.87%, to close at 1460.13 points. As indicated by A, the KLCI broke below the 14, 21, 31 EMA marginally. Support for the KLCI is at 1430 while the resistance remains at 1500 as well as the 200-day MA.

As indicated by B, total market volume fell 20.10%, as investors are staying away from the market amid uncertainties and worries of the Euro zone debt crisis. If volume should remains low, it is actually a sign of a healthy consolidation of the market. Of course, with low volume, the market is less likely to pick up any strength.

As indicated by C, the Stochastic is still falling, breaking below 50%. Generally, if the KLCI were to consolidate in a sideways manner, the Stochastic is expected to fluctuate between 30%~70%.

In conclusion, after being resisted by 1500 as well as the 200-MA, the KLCI enters a consolidation. Despite the KLCI retreat, it has not formed lower-highs, thus not yet showing a downtrend formation. If the KLCI should continue to stay below the