Sentiment Index - Malaysia Stock Market

Constructed and written by Smartbiz 

Intraday Oscillator: Despite of the more than 200 points gain for Dow Zones, local sentiment was indifferent but gradually lost strength before the break. The Oscillator slid all the way down to end at -107.81, lost 326.48 compared to its opening point at +218.67. The Average recorded as -5.84; gained 111.31 compared to -117.15 of the previous session.

MSCD: After today’s market, %K curved slightly higher and the Histogram printed another shorter bar in the negative zone.

MSCD data are appended as below:
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DATE	A_OSC	%K	%D	%A	HGM
11/12/2012	-154.28	-148.07	-111.93	-101.64	-23.16
11/14/2012	-49.67	-132.94	-107.32	-99.75	-23.65
11/15/2012	-167.77	-138.30	-111.80	-102.22	-24.22
11/19/2012	-117.15	-135.04	-112.20	-102.77	-23.95
11/20/2012	-5.84	-115.17	-104.31	-99.24	-21.33
LAST+-	111.31	19.87	7.88	3.52	2.62

Analysis: MSCD shows that market sentiment is improving as the Histogram continues to print shorter bars in the negative zone. However, as %K remains below %D, the immediate trend is still considered as bearish.

Regional markets are waiting for US market to confirm its reversal.

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.