After rebounding and temporary pausing the downtrend for a couple of days, profit taking hit the market again. As indicated by A, the KLCI had its intraday low touching 1535.11 points, and precisely testing the 1535 supports. The KLCI fell 7.13 point or 0.46% to close at 1539.71 points. If the KLCI should break below 1535 support, the next support is at 1500.

As indicated by B, total market volume remains below the 40-day Volume Moving Average, and this clearly suggesting that the market is quiet as investors are being cautious, with the wait-and-see attitude. Without sufficient fresh capital inflowing the market, the market, in general, is less likely to pick up its strength.

As circled at C, the MACD histogram is still showing a Rounding Bottom formation, and this suggests that the KLCI is only consolidating. Meanwhile, the MACD line is still falling below the zero level, and this is a bearish signal for the KLCI.

In conclusion, the KLCI is only consolidating in its existing downtrend, with negative technical outlook. If the KLCI should break below 1535, it would resume its downtrend. For now, the best scenario for the KLCI would be a prolonged side-ways movement, for this would help neutralize the some selling pressure in the market, which would benefit the KLCI as well as the market as a whole.