On Tuesday, the KLCI was badly hit by the sellings of blue chips. As indicated by A, the KLCI had its intraday low reaching 1601.31 points, but fortunately it started to rebound in afternoon trading, recovering much of its earlier losses. At the close, the KLCI was at 1614.24 points, downed 6.8 points or 0.42%. Support for the KLCI remains at 1600 while the immediate resistance is at 1625 and the 14, 21, 31 EMA dynamic resistance.

As indicated by B, total market volume remains below the 40-day Volume Moving Average, and this suggests that the overall market participation is still quiet. Generally, the lower volume implies that investors are being cautious, but the market is usually unlikely to pick up its strength without sufficient market participation.

As circled at C, the Stochastic remains below 30%, in the short-term bearish territory. This suggests that the short-term movement of the KLCI is still weak.

In conclusion, the KLCI short-term is still weak, but fortunately, with the rebound above 1600, the is temporary avoiding further deterioration of its currently cautious outlook. Nevertheless, with the KLCI below the 14, 21, 31 EMA, the immediate technical outlook is at cautious.