Constructed and Written by Smartbiz
Asian equity markets ended mostly lower Friday, retracing part of the recent rally as a modest slowing in Chinese inflation failed to kindle a rebound amid fresh concerns over regional economic growth and euro-zone debt.
"The 'non-recessionary' data out of the U.S. in recent weeks and the promise of a 'European solution' by early November has been good for a 10%-odd rally across most global equity markets this month, but it now seems that momentum may be coming to an end," said Cameron Peacock, market analyst at IG Markets in Australia. "Global markets could only run so far on that news alone." (WSJ)
Local sentiment retreated from several days of excitement. The Intra-day Oscillator opened in negative notes but gradually recovered towards the end to finish at +7.18; gained 421.89 when compares with its starting point. The Average recorded a loss of 333.76.At the end of the day, %K (Yellow) of MSCD computed as +301.05 (-115.38), %D (Red) +94.65 (-34.29) and the Histogram +165.14 (+10.32).
Both indicators hooked down but the Histogram continued to print a longer bar - its twelfth positive bar in a row. Conclusion
As expected, market sentiment receded in conjunction with regional losses today. But, buying on weaknesses gave a support to the downswing. Sentiment should remain cautious amid profit taking. So long as %K didn’t fall below %D, market sentiment will recover shortly.
Key Index
(Chart posted with courtesy of ChartNexus)
FBMKLCI lost nearly 3 points to rest exactly on its 50EMA which is around 1,442 now. The minor correction should continue and the next support will be the 30EMA around 1,420.FBMACE added about 56 points to end at 3,879. Its upside momentum will continue to face its previous high, 3,925.
(Note: Explanation for Intra-Day MSO and MSCD are archived under "Labels" at the lower portion of the sidebar.)
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