Sentiment Index - Malaysia Stock Market

Constructed and written by Smartbiz

 

Intraday Oscillator: Market sentiment progressed in hesitation today but last hour buying lifted the oscillator to end at +165.38; gained 143.16 compared to its opening point at +22.22. The Average recorded a gain of 31.97, improved by 655.51 points compared to -623.54 of the previous session.

MSCD: After today’s market, %K hooked up and the Histogram printed a shorter bar in the negative zone.

MSCD data are appended as below:

DATE	A_OSC	%K	%D	%A	HGM
6/9/2012	1110.83	423.04	262.96	167.00	68.02
7/9/2012	377.07	299.98	215.53	147.22	71.31
10/9/2012	216.15	287.09	215.58	149.72	71.35
11/9/2012	623.54	338.83	245.81	166.95	75.68
12/9/2012	31.97	281.80	225.22	159.72	71.86
LAST+-	655.51	57.03	20.58	7.23	3.8

Conclusion:

Retailers who garnered their favorites with high expectation for a rally when they saw FBMKLCI climbing higher and higher would have got burn in the recent breakdowns. In fact, MSCD has sent out a warning signal on the 23rd of July when %K failed to stay above the positive level and fell deeply below %D. Since then, the indicator slid all the way down and never returned. The bearish signal was further confirmed by %D when it fell apart with %A, lately.

This is a good example of how MSCD gauges market movement with more accuracy than that of FBMKLCI.

Based on charts, market sentiment will still be progressing in weakness. Buying on some heavily sold low-liners today though has given support to the market but overall outlook remains the same, at this juncture.

Note: Explanation on Intra-Day MSO and MSCD are archived under "Labels" at the sidebar.