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Thursday, November 3, 2011

Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Asian stock markets ended mostly lower Thursday, with the financial sector weighed down by jitters over the possibility Greece will exit the euro zone.

"The latest meeting of European leaders at the G-20 summit in Cannes has firmly convinced the market that the move by Greece to call for a referendum on something that looked like a done deal has not gone down well with the European powerhouses," said Jason Hughes at IG Markets Singapore. He said the current situation "leaves a very uncertain month ahead for financial markets." (WSJ)

Market Sentiment
Local sentiment sank into deeper pessimism as regional markets continued to subside despite of Dow Jones overnight gain. The Oscillator fell deeper after the break to finish at -1,216.62; lost 1,279.68 when compares with its opening point. The Average recorded a loss of 1,106.91.

At the end of the day, %K (Yellow) of MSCD computed as -52.55 (-191.63), %D (Red) +51.24 (-92.69) and the Histogram +62.56 (-41.59).

Both indicators fall sharply lower and %K soaked in the red after cutting %D from above. The Histogram printed another shorter bar to continue its round topping process.

Market sentiment reversed into pure pessimism with buying support withered but selling accelerated. Total volume increased by about 11% to 1.755 billion.

In MSCD, %K has been hammered into the red by persistent disturbance from Europe and it has to decide for its own fate tomorrow. Unfortunately, buying support has diminished fast the odds will not be in its favor, this time.

Anyway, there are still a lot of investors out there waiting to return to the market once prices have been slashed to an attractive level.

Hopefully, news that Greek PM Papandreou may withdraw referendum proposal would give the market a bit of a boost tomorrow. In response to this, Dow Jones Future has surged by 151 points.

Key Index
(Chart posted with courtesy of ChartNexus)
FBMKLCI lost more than 8 points today and exposes itself to the 20SMA which is around 1,445 now. Technically, the 20SMA which is also the Mid-Bollinger Band will confirm the next direction of the index. Falling below of which will set the index for more downside bias.

FBMACE tried to defy the effect of gravity by breaking the overhead resistance but capped by the 200SMA. If the index can break through the 200SMA, ACE counters will be released for higher movement.

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

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