As indicated by A, the KLCI retreated on Friday, unable to break above the L1 downtrend line. The KLCI closed 7.08 points or 0.45% lower at 1573.59 points. For now, the downtrend remains intact. Immediate support for the KLCI is at 1570 followed by the 1535.

As indicated by B, total market volume fell 47.03%, as it is still below the 40-day Volume Moving Average. This shows that the market is not yet active, as investors are still being very cautious amid worries about the Euro zone.

As circled at C, the MACD histogram is still rising, thus not forming any Rounding Top. If the MACD histogram should form a Rounding Top, it means that the KLCI is losing strength, which is the signal suggesting a consolidation or some correction for the KLCI.

In conclusion, despite the gains for the past few days, the KLCI is still capped under the L1 downtrend line, and the downtrend is intact. Although, when compared to the regional markets, the KLCI is the least affected, but since the market is already globalized, the performance of the KLCI is still exposed to some external factors.