For the past few days, the PSEi has been hugging the neckline of the inverse head & shoulders and was just waiting for one big push.

That one big push came Friday after the DJIA contributed to the prevailing bullish sentiment in the market.  Popular stocks were flying out of their cages, so too were other stocks that some have overlooked.

The index has broken out of the long consolidation that the PSEi has been forming for more than a year.  Yet one thing bothers me.  How come the volume of the index did not pick up when the breakout occurred?  Hopefully, the index will not surpass the neckline when the time comes for it to correct.

Both the moving averages and the MACD are pointing upwards.  We could see some more green days coming this week.  But bear in mind that since we’ve been going up for so many days, many are also ready to cash in on their jackpots.

The best thing to do now is to ride out the wave but never to forget setting your protective stops.

Recommendation: Wait and see
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