As indicated by A, the FBM KLCI had its intra-day high reaching 1607.31 points, but as it was approaching the historical high of 1609, profit taking pulled the KLCI lower, to close at 1601.43, losing 2.96 points or 0.18%. The 14, 21, 31 EMA is still serving as the dynamic support to the KLCI.

As indicated by B, total market volume increased 12.2%, with volume above the 40-day Volume Moving Average. However, in theory, the increased of volume with the KLCI being resisted coupled with higher number of losers than gainers, actually implying some increase in selling pressure.

As circled at C, the MACD histogram has not formed a Rounding Top, and this suggests that the KLCI short-term positive movement is still intact.

In conclusion, some pullback at resistance is usually normal as the KLCI is testing its historical new high. Provided that the KLCI is still above the rising dynamic support, the immediate technical outlook is still positive. If the KLCI should later break above the 1609 resistance with strong volume, it would allow more upside room for the KLCI, as well as the market in general. However, if the KLCI should break out with very thin volume, there is a risk of a false breakout.