After hitting a high of 1308 seen on 21^st January 2010, the benchmark KLCI has started to reverse its fortune. The prior uptrend for the KLCI had been damaged as it had pierced below its 20, 50 and 100-day moving averages. In addition, the MACD trend indicator continues to trend downwards below its centerline which reinforces the bearish condition for the KLCI. The immediate support to look out for is at 1233 and a violation below it may unleash a bout of bearish force to push the KLCI further south to test the key support at 1200/1196 which corresponds closely to the 23.6% Fibonacci retracement from the March 2009 low of 836 to the recent high of 1308. Failure to hold at this level may see a further sell-off towards the next support at 1153. However with the RSI oscillator hovering below the 30% oversold level, the KLCI may see a short-term “relieve bounce” towards the falling window gap resistance of 1253-1263 and a break above it may see a further push up towards the next resistance at 1286.