News / Philippine Stock Market

PSEi Outlook For July 7 - 11, 2008 By Bonner Dytoc July 06, 2008

There was some semblance of hope in the market last Friday. The PSEi gapped down last Thursday with a low of around 2289. But at the last day of last week, the index rose by 27 points to reach the bottom of the gap created the previous day.

The gap to be closed by the index has a range of 2364.95 to 2393.90 and we feel a closing of the gap is significant. Why? The closing of gaps may signify a change in the sentiment, even for the short term.

But for now, it is too early to call a turnaround and a change from bearish to bullish mood. Things are still unclear so let’s not get too pumped up just yet. Let’s remember that our support of 2407 has already been broken. Right now, the next level that we’re looking at is 2175.

To quote one of the Dow theories, the trend is assumed to be in effect until a clear reversal signal occurs. Show me that reversal signal and I’ll be bullish on the market, even if it’s cautiously bullish. Until then, I’d still stay out.