On Wednesday, the KLCI gained 5.85 points or 0.36%, to close at 1645 points. This is the historical new high at closing price. The immediate resistance for the KLCI is still at 1647 points, while the 14, 21, 31 EMA is still serving as the dynamic support together with the L2 uptrend line. (Study Arrow A)

As indicated by B, total market volume fell 16.39%, with volume barely above the 40-day Volume Moving Average. For now, theoretically, with volume above the 40-day Volume Moving Average, it suggests that the market is well-participated. However, technically, volume did not increase significantly despite the KLCI is making new highs, which means that the new high was ideally supported by the mass.

As circled at C, the Stochastic is breaking above 90% again, entering its short-term over-bought territory. This suggests that the short-term movement of the KLCI is over-heating again, thus a pullback is likely in the near future.

In conclusion, with the KLCI short-term over-heating again, some pullback is expected. In order to sustain a healthy uptrend, some consolidation or correction is needed. Technically, the best consolidation would be a narrow sideways movement.