Due to the sharp fall of the US market last Friday, Asian markets were mostly lower on Monday. The KLCI had its daily low touching 1579.74 points, before rebounding to close at 1584.87 points, as lifted by some blue chips, and reduced its losses to only 6.17 points or 0.39%. As indicated by A, the 14, 21, 31 EMA is still serving as the dynamic resistance to the KLCI while the immediate support is still at 1566 point.

As indicated by B, total market volume fell 27.6% with volume clearly below the 40-day Volume Moving Average. This does not only suggest that the market is lightly participated, but also implying that investors are still not feeling confident about the local market, thus the market is lacking of its ideal technical condition of resuming its uptrend.

As indicated by C, the MACD histogram is still rising, after forming a Rounding Bottom last week. The rising of the MACD histogram suggests that the KLCI short-term movement is regaining some strength as technical rebound takes place. The short-term positive movement is likely to carry on until the MACD histogram should form a Rounding Top.

In conclusion, the KLCI is still only having its technical rebound, and still not sign of resuming its uptrend, and its technical outlook is still not yet returning to the positive territory. Meanwhile, if the KLCI should begin falling again, it would be forming Lower-highs, and if the KLCI should continue to fall and break below the 1566 support, it could form a downtrend.