Due to the over-night sharp losses of the US markets, plus the Asian markets were also falling, and the KLCI was not exempted. The KLCI had its intra-day low touching 1637.50 points, but at late trading, the KLCI started to rebound, closing at 1641.07 points or a loss of 4.46 points, forming a long lower-shadow candlestick. Generally, this implies that the KLCI is likely to have some rebound.

As indicated by B, total market volume fell 17.16%, with volume slightly below the 40-day Volume Moving Average. Generally, when the market overall is falling, lower volume is normal as investors are being cautious while reluctantly taking up new positions.

As indicated by C, the Stochastic stays below 30%, thus suggesting that the short-term movement of the KLCI is still weak. If the Stochastic should break above 30%, it would be a signals suggesting a short-term technical rebound for the KLCI.

In conclusion, after falling for 5 consecutive days, the KLCI is showing a sign of a possible rebound. Also, many blue chips counters are trading at their short-term over-sold condition, and this could attract some bargain buying interests, thus it may increase the chance of some rebound in the KLCI.