Heavy profit taking activities pushed the market lower, with the KLCI losing 4.35 points or 0.27% to close at 1583.75 points. As indicated by A, the KLCI is still staying above the 14, 21, 31 EMA dynamic support, thus the uptrend is still in place. Resistance for the KLCI is at 1597.08 or 1600.

There were 491 losers over 244 gainers, suggesting selling activities were dominant on Wednesday. Meanwhile, as indicated by B, total market volume fell 19.61%, with volume remains below the 40-day Volume Moving Average. This shows that investors are still not feeling confident about the local market.

As indicated by C, the Stochastic fell slightly 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 later break below 30%, it would be entering the short-term bearish territory.

In conclusion, despite that the uptrend of the KLCI is still intact, heavy selling amid low inflow of fresh capital into the market has prevented the KLCI from extending its uptrend. If the KLCI should break below the 14, 21, 31 EMA, the uptrend would be interrupted, but it is still too soon to call for any reversal.