Due to some bargain buying on select blue chips on Monday morning, the KLCI opened slightly higher. However, soon the stronger selling pressure over took the buying interest, and at the close, the KLCI fell another 2.09 point to 1654.04 points. As indicated by A, the KLCI fell below the 14, 21, 31 EMA dynamic support marginally, and the next support for the KLCI is at 1625, while the resistance remains at 1680.

As indicated by B, total market volume fell 17.64%, but technically, it is rather normal to see lower volume when the market is having its correction, as investors are taking extra caution while waiting at the sidelines. However, if volume should continue to shrink, it is also unlikely for the index or the market overall to regain its strength. Meanwhile, with losers outnumbering gainers (471 losers / 235 gainers), this suggests that the selling pressure is still on the higher side.

As indicated by C, the Stochastic stays below 30%, in its short-term bearish territory. This suggests that the short-term movement of the KLCI is now weakening, and this negative signal shall remain intact, until the Stochastic should rebound and break above 30%.

In conclusion, with the KLCI closing below the 14, 21, 31 EMA, the current uptrend could be violated. However, this does not mean that the KLCI is forming a downtrend immediately, and whether the market is entering a bear market, it is still too soon to call. This is because we don't see any downtrend characteristic yet, not even a lower-highs formation.