The index dropped to as low as 1684.75 but we had a good rally last week with the PSEi nearing the 2000 level.  That’s the good news.

The bad news is that the market is still bearish and there is still no signs of a reversal.  No reversal for the intermediate trend, that is.

There would be some who would argue that the prices of the stocks are already too cheap.  I would still call on all of you to exercise caution as the sentiment is still quite bearish and any rally will be easily met with selling.  The best thing for us to do now is to exercise our patience.

Recommendation: Stay liquid.
Resistance: 2000.00