News / Philippine Stock Market

PSEi Outlook For Jan. 21 - 25, 2008 By Bonner Dytoc January 20, 2008

It had to happen. The bottom gave out.

We mentioned weeks back that the PSEi has been consolidating inside a downward channel. We also mentioned a possible decoupling of our market from the US. But when the DJIA was down by 34.9 points on Wednesday night, the following day we decide to break the support of the channel by falling more than 100 points. To add insult to injury, the DJIA falls by 300 points on Thursday night, and we again followed the movement by dropping another 80.59 points to close at 3168.30 but not after we reached the low of 3111.

The MACD is just confirming that we’re already bearish as it has been oscillating under the zero line.

So where do we go from here? Hopefully we have move sideways rather than trend lower. But since we’re taking our cue most of the time from the US, that’s more of wishful thinking than anything right now.