As indicated by A, the FBM KLCI continued yesterday's fall, by opening with a gap down at 1633.59 points. Despite having its intra-day high of 1635.95 points in early trades, the KLCI ended sharply lower, closing at 1617.99 points, losing 23.02 points or 1.4%. Not only that the KLCI fell below the 14, 21, 31 EMA, it also broke below 1625 support.

As indicated by B, total market volume fell 3.78%, but volume remains above the 40-day Volume Moving Average. This suggests that the market is still actively participated. However, losers still outnumbered gainers, 739 to 157, as profit taking is still dominant.

As indicated by C, despite the KLCI having its biggest fall since May 16 this year, the Stochastic rebounded slightly after touching 0%. This suggests that the short-term movement of the KLCI is indeed bearish, but it is at an over-sold condition.

In conclusion, after falling sharply in just two trading days, the KLCI short-term is showing some over-sold condition, thus some sort of rebound or pullback is likely in the near future. Therefore, this short-term selling could be short-lived, and the immediate support is still at around 1625. Nevertheless, with the KLCI interrupting its uptrend, and staying below the 14, 21, 31 EMA, the immediate technical outlook turning cautious. Whether or not the KLCI would form a downtrend, it is still yet to be confirmed.