Despite the strong rebound of the US market on last Friday, the KLCI failed to rebound on Monday, but closing even lower. As indicated by A, the KLCI has been trending down in its short-term weakness movement for the 15^th day now.

As indicated by B, total market volume remains below the 40-day Volume Moving Average, and this suggests that market participation is a little low, as investors are being very cautious amid the weakening market sentiment. Meanwhile, losers still outnumbering gainers on Monday with 447 losers versus 225 gainers. This shows that the selling pressure is still on the higher side.

As indicated by C, the Stochastic stays below 10%, which suggests that the short-term movement of the KLCI is indeed weak, but however, in over-sold condition.

In conclusion, despite the short-term over-sold condition, the KLCI has not even rebounded a little, and therefore, the immediate technical outlook for the KLCI is still on the negative side. Meanwhile, the KLCI is testing the 200-day Moving Average line, and if the KLCI should breach below this level, it would dampen the mid-to-longer term outlook for the KLCI.