FBMKLCI has managed to stay above the 1600 psychological level in the past 2 weeks. With each passing day, it looks more likely that this psychological level can withstand the selling. Thus the index and market may have a decent chance of recovery from here.
When we compare FBMKLCI with S&P500, we can see that when S&P500 rallied strongly and FBMKLCI went the opposite direction (in September to November 2017), the subsequent pullback in S&P500 coincided with a strong rally in FBMKLCI. If this were to repeat, a possible pullback in S&P500 in the weeks ahead could be followed by a decent recovery rally in FBMKLCI.
Chart 2: S&P500 and FBMKLCI's weekly chart as at May 27, 2019 (Source: Stockcharts.com & Malaysiastock.biz)
Let's wait & see how our market will perform in this tumultuous time of trade war between the US and China.