As expected, the PSEi tested the primary resistance but corrected immediately from it.

It actually took its cue from the DJIA as it also corrected substantially in a short span of time.  What the local index needs to do now is to rally back to bring some relief to all investors and traders but at the same time, create a consolidation pattern.

The 65-day moving average is now racing to cross above the 260MA to make things more bullish but this is still not the ideal setup since the 130MA is still below the 260 MA.

The MACD has shown us that it’s time for people to take some profits as it has already reacted to the quick correction.

As many have said before, taking profits is not a sin.

Recommendation: Take profits
Resistance: 2500