As shown on the chart above, the KLCI fell 11.89 points or 0.75% due to profit taking of heavy weighted blue chips. As indicated by A, the 14, 21, 31 EMA is now serving as the dynamic resistance to the KLCI. Support for the KLCI is at 1500.

As indicated by B, total market volume fell 10.91%, with volume below the 40-day Volume Moving Average. This shows that the market participation is still low, and also implying that investors are still not feeling confident about market, and choose to stay on the side lines.

As indicated by C, the Stochastic remains below 30%, in the short-term bearish territory. This suggests that the short-term movement of the KLCI is still weak, and the weakening movement is expected to carry on until the Stochastic could successfully break out above 30%.

In conclusion, despite the short-term weakening movement, the KLCI has not really formed a downtrend. If the KLCI should rebound, and later forming lower-Highs, then it would have the characteristic of a downtrend formation. In short, as long as the KLCI is still resisted by the 14, 21, 31 EMA dynamic resistance, the immediate technical outlook for the KLCI is still negative.