Constructed and Written by Smartbiz


Market is deemed to step into the bearish divergence in a short period. Gains will not be sustainable, if any.

Asian markets fell Friday, overlooking strong earnings from some of the region's biggest companies as Japanese shares tumbled on dour economic figures and a strong yen.


New figures from Japan offered a sobering reminder that the recovery in the world's No. 2 economy remains fragile: The jobless rate rose, deflation deepened, and industrial production fell unexpectedly. (Yahoo)


After 5.00pm, Japan market lost 1.62%, China 0.40%, Hong Kong 0.30% and Singapore 0.41%.


At the local front, FBMKLCI rolled like roller-coaster up and down along the neutral level. Again, last minute manipulation pulled it to end at its day-high at 1,360.92 (+2.51/0.18%). FBMKLCI Average (Pivot Point) was 1,358.87 (+1.92). Total volume was 917m (-82).



Market sentiment progressed from bad to worst with the Oscillator slid into red. However, last minute buying lifted it to end off low at -66.57 lost 166.28, when compares with its starting point. The Average recorded a loss of 150.94.



At day's end, 12EMA (blue) of MSCD fell to +109.33 (-48.03), 26EMA (red) to +95.00 (-20.00) and the Histogram fell to +14.33 (-28.03).


Conclusion (Click on chart to view)


Every time, when I saw FBMKLCI easily been manipulated in the last minute I couldn?t stop myself to contempt the existence of the Index. It looks like the Index is easier to manipulate than any counter in the ACE board.


After today?s market, both 12EMA and 26EMA fell sharply and 12EMA almost touched 26EMA. The Histogram is now floated just slightly above the sea level. Market is deemed to step into the bearish divergence in a short period. Gains will not be sustainable, if any.


My Portfolio: No transaction