On Wednesday, the FBM KLCI ended sharply lower, due to the overnight losses in the US and European markets. The KLCI fell 15.08 points or 0.95% to close at 1574.83 points, which is the biggest daily fall since 3^rd of January this year. However, as indicated by A, the KLCI is still staying above the 14, 21, 31 EMA dynamic support, thus the uptrend remains intact. Resistance for the KLCI stays at 1597.08 or the 1600 psychological mark.

As indicated by B, total market volume increased 35.29%. It may appears as some increased of inflow of fresh capital, but due to the falling of the KLCI, coupled with higher losers over gainers (476 to 283), the increased of volume is actually suggesting higher profit taking activities with stronger selling pressure.

As indicated by C, the Stochastic fell below 70%, and ended its short-term bullish signal. This is also a signal suggesting a beginning of a technical correction. If the Stochastic should stay around 50% level, the KLCI is likely to consolidate in a sideways manner. If the Stochastic should break below 30%, it would be entering the short-term bearish territory.

In conclusion, despite the falling of the KLCI, the uptrend remains intact, for the KLCI is still supported by the 14, 21, 31 EMA dynamic support. If the KLCI should break below the 14, 21, 31 EMA, the uptrend could be temporarily interrupted, but it would be too soon to call for any reversal. If the KLCI should form lower-highs, it could be a signal suggesting a weakening movement or one of the characteristic of a possible reversal. Nonetheless, even if the KLCI should form a reversal, it will not take place overnight.