The correction that we were expecting came like a thief in the night.  Well, not exactly.  But it came just the same.

As usual, when the market corrected, many were groaning as their holdings were taking a hit.  But we have to look at this from a bigger perspective.  The correction is actually needed to push the PSEi higher.  In fact, if the index wanted to, it can still correct up to 2450 and it would still be considered a healthy correction.  But I don’t think it will drop that low.  I think it may have a chance to correct down to the neckline it broke out of and retest it.  That level is 2589.

The good news, we think, is that the moving averages are just about to set itself up for a bullish order.  The MACD has the fast line correcting a bit but still generally pointing upward.  So overall, I think we still have more room to go higher despite the recent correction.

Time to lock and load, boys.  Just don’t put everything n the crosshairs.