Although the US market was closed yesterday due to Thanks Giving holiday, the European markets were generally higher. However, not only that the KLCI did not rebound, it opened gap down, and fell another 4.23 points to close at 1614.32 points. As indicated by A, after falling below 1625, the KLCI is now heading to 1600 psychological level.

As indicated by B, total market volume increased 12.45%, but was unable to break above the 40-day Volume Moving Average. Nevertheless, losers outnumbered gainers on Friday with 435 losers versus 216 gainers. This shows that profit taking is still high.

As indicated by C, the Stochastic stays below 30%, in its short-term bearish territory. This shows that the KLCI short-term movement is still weak.

In conclusion, the KLCI has been staying in its short-term weakness movement for 14 trading days, and until now, we could not find a reliable sign of any rebound, thus the immediate technical outlook remains on the negative side. If the KLCI should break below 1600, it would further dampen the cautious market sentiment.