Sentiment Index - Malaysian Stock Market

Constructed and Written by Smartbiz

Asian stocks rebounded solidly Thursday after positive U.S. data provided some relief to investors spooked by the recent market turmoil, with regional commodities and oil plays leading the surge.

Investors were encouraged by the U.S. ADP jobs report Wednesday and a growing acceptance among European officials of the need to recapitalize banks amid efforts to contain the region's debt crisis. (WSJ)

Market Sentiment

Local sentiment reacted to Dow Jones repeated gains with firm notes. The Intra-day Oscillator started in positive zone and edged up decisively after the break to finish at +773.38; gained 283.01 when compares with its starting point. The Average recorded a gain of 554.45.

At the end of the day, %K (Yellow) of MSCD computed as -2.07 (+101.15), %D (Red) -128.22 (+54.63) and the Histogram +63.26 (+15.72).

Both indicators moved firmly higher. %K broke the resistance line and surged near the zero level. The Histogram printed yet another longer positive bar.

Market sentiment has shown some encouraging movement. This most probably boosted by the impending 2012 Budget. We are waiting for both %K and %D to crawl into the positive zone to confirm the sustainability of the effect of the Budget.

Key Index
(Chart posted with courtesy of ChartNexus)

FBMKLCI broke through 12EMA today and now facing the 20MA. Breaking through the 20MA will increase its potentiality to test the formidable 1,400 psychological resistance. Else, the index will come back to square again.

(Note: Explanation for Intra-Day MSO and MSCD are archived under "Labels" at the lower portion of the sidebar.)