As the overnight US market falls, the KLCI slipped 12.61 points or 0.85% to close at 1465.17 points on Tuesday. As indicated by A, if the KLCI should continue to fall and break below the L1 line, the uptrend would have been violated. Resistance for the KLCI remains 1500 as well as the 200-day Moving Average, while the support is at 1430.

As indicated by B, total market volume increased 2.56%, but still below the 40-day volume moving average. This suggests that the market is still at caution as investors are not yet regaining their confident about the local market.

As indicated by C, the Stochastic fell below 70%, which ended the short term bullish signal. Currently, the Stochastic is staying around 50%, which is the neutral region. If the Stochastic should continue to stay around 50%, the short term movement of the KLCI is likely to stay in a sideways manner.

In conclusion, if the KLCI should break below the L1 line, naturally, the uptrend would fail. But this does not mean that the KLCI would immediately reverse and form a downtrend, for the KLCI could still consolidate between 1430 ~ 1500.