Sentiment Index - Malaysia Stock Market

Constructed and written by Smartbiz 

Intraday Oscillator: Local sentiment lost strength after the key index slid into negative zone again. The Oscillator fell to end at -74.94 lost 37.45 compared to its opening point at -37.49. The Average recorded as -49.67; improved by 104.61 compared to -154.28 of the previous session.

MSCD: After today’s market, %K edged slightly higher and the Histogram printed an almost even bar in the negative zone.

MSCD data are appended as below:
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DATE	A_OSC	%K	%D	%A	HGM
11/7/2012	-86.24	-114.15	-87.35	-89.10	-7.65
11/8/2012	-378.99	-154.89	-108.96	-99.64	-15.30
11/9/2012	-103.25	-146.94	-108.54	-99.77	-19.92
11/12/2012	-154.28	-148.07	-111.93	-101.75	-23.17
11/14/2012	-49.67	-132.94	-107.32	-99.86	-23.66
LAST+-	104.61	15.13	4.61	1.89	-0.49

Analysis: Market sentiment seems has temporarily stabilized but still in bearishness. The unstable key index will exert more pressure to investor's confidence.

On the other hand, US analyst said there is a potential "bloodbath" for stocks as a result of inadequate resolutions to the US deficit challenges. What do you think?

Explanation on MSCD: 
1. %K (Yellow) is a 12-Day EMA Oscillator that reflects the trend of present market sentiment. 
2. %D (Red) is a 26-Day EMA Oscillator serves as a trigger line for short-term trend of market sentiment. Market is considered as under short term bearishness once %K fell below %D but will recover sooner or vice versa.
3. %A (Blue) is a 54-Day EMA Oscillator serves as a trigger line for mid-term trend of market sentiment. Market is considered as under mid-term bearishness once %D fell below %A and will take longer to recover or vice versa. 
4. HGM (Histogram) is a bar signal that shows the relative strength of %K and %D. 
5. All data are taken from the Intra-Day Market Sentiment Oscillator (MSO) computed from the number of Gainer and Loser in a regular time basis.