As the US market fell for a few days, the KLCI opened lower again on Thursday, and tested the 1655 support. At the close, the KLCI ended at 1655.47 points, losing 3.93 points or 0.24%. As indicated by A, the 1655 support is still intact while the resistance is at 1688.

As indicated by B, total market volume fell 12.3%, with volume below the 40-day Volume Moving Average. This shows that the market participation is still low, as investors are being cautious.

As indicated by C, the Stochastic is still falling while testing the 70% level. If the Stochastic should break below 70%, it would mark an end to the short-term bullishness of the KLCI, and it would be a signal suggesting a beginning of technical correction.

In conclusion, the technical outlook for the KLCI remains positive, and it is only consolidating right now. Meanwhile, as the market is consolidating, a lower volume is usually normal. But if the KLCI should attempt to resume its uptrend, more volume is required to confirm such signal.