As indicated by A, the KLCI opened gap down on Wednesday, losing 25.03 points or 1.6% to close at 1536.04 points. This is the biggest fall of the KLCI since September 2011. For now, the immediate resistance for the KLCI is at 1566-1570 while the support remains at 1500.

As indicated by B, total market volume increased 18.7%, but still below the 40-day Volume Moving Average. This shows that the market is still relatively quiet. Technically, if the KLCI (or the market as a whole) is falling with significant increase of volume, it implies an increased of selling pressure.

As indicated by C, the Stochastic still stays below 30%, in the short-term bearish territory, suggesting that the KLCI short-term movement is still weak. If the Stochastic should break above 30%, it would be a signal suggesting a beginning of a technical rebound for the KLCI.

In conclusion, after the sharp fall, the short-term movement of the KLCI is showing some sign of over-selling, and generally, some pullback is possible in the near future after the KLCI is over-sold. However, the downtrend for the KLCI remains intact, while the technical outlook is still negative.