The good news is that the PSEi has reached and surpassed our near term target of 3114.  The bad news is that the momentum of the index seems to be weakening even further.

The next level that the PSEi must breach is 3130 and that’s just around the corner.  However, knowing that the momentum is slowing down, we’re getting apprehensive about the index’s capability to surpass this at this point.

The moving averages still look okay at this point but it’s the MACD that we’re worried about.  Every week we’ve been seeing that the momentum of the MACD has been slowing down on the bigger picture.  Yes, the fast line is curving upwards but that’s on the short term.  Overall, we’re not gaining ground until the MACD surpasses the high of December 2009.

Again, there are opportunities to make a profit.  However, we should be cautious knowing that at any time, the whole market could turn around and leave you crying.

Recommendation: Trade cautiously
Resistance: 3130