On Friday, the KLCI opened lower, and despite it went back to the positive territory during intra-day trading, it still ended lower, at 1653.36 points, losing 2.11 points. As indicated by A, the KLCI is now testing the 14, 21, 31 EMA dynamic support, while the resistance is at 1688.

As the KLCI is consolidating, total market volume is also falling. As indicated by B, total market volume fell 2.4% on Friday, with volume below the 40-day Volume Moving Average. This suggests that the market participation is relatively lower, as investors are being very cautious, while reluctant to take up new positions.

As indicated by C, the Stochastic fell below 70%, which ended the short-term bullish signal of the KLCI. This is also a signal suggesting a beginning of a technical correction. If the Stochastic should continue falling, and breaks below 30%, it would be entering its short-term bearish territory.

In conclusion, although the KLCI has fallen a few days in a row, this is merely a consolidation or a mild technical correction. Technically, we don't see any bearish reversal yet. In fact, if the KLCI should rebound from the 14, 21, 31 EMA, and form higher-lows, it would have a chance to resume its uptrend movement. Of course, this would have to be confirmed with the significant increase of volume.