The PSEi seems to be consolidating at current levels as the whole market is looking for some kind of justification to push itself higher.

The nearest level that I think will serve as a resistance of sorts is around 2890.  This is practically the same level of resistance met by the index back in May 2009.  Once this is surpassed, the next immediate resistance would be at 3055.

The moving averages are now in the bullish set up but the MACD is turning into a sell short setup where we expect the PSEi to be correcting.  It’s quite possible that we could see some correction coming into the market by this coming week.

Remember, a profit is a profit.  No one has ever been accused of making a mistake by taking profits.

Recommendation: Take profits
Resistance: 2890