If ugly can be easily translated into a chart, then the PSEi would qualify as an example.

If the ordinary trader is confused by all the volatility happening in all the global markets, then we can also lump them together with chartists as even they are having a hard time gauging what particular side to take with all the massive flip-flopping happening.

Let’s make this clear: we are still in a bear market. Have we reached bottom? I don’t know as there are no clear signs of a reversal happening yet. But there are a lot of gaps for the index to fill in when the time comes for it to move higher.

The first area that will be tested will be 2175 to 2220 (the circled portion). The next area would be 2340 to 2410. Please take note that 2340 is proving to be a resistance for the short term. Lastly, 2438 to 2485 will be the last gap to be filled when the bulls come back.

I know that many of you have hands that itch as it’s been a while since you traded anything. But trust me; it’s best to stay idle for the moment while we sort things out. If you try to get in now, it’s going to be just like stepping into a giant blender. Not only will you see a violent vortex chopping everyone down to size, but you might end up as one bloody mess before things get better.

Recommendation: Stay liquid.