As expected, the PSEi has broken the neckline of the double top that we saw the other week.  This doesn’t look good for us.

For the moment, the 130-day moving average at 2917 is supporting the index, but it could only be a matter of time before this too gets broken.

The other indicator that shows that we are turning bearish momentarily is that the MACD has now fallen below the zero line.  Add to that, the downward momentum is accelerating.  So I guess that means we shouldn’t be that jubilant when the market rallies as it’s just an opportunity to sell.

For this week, we should expect more red days for the PSEi.  Lighten up, people.

Recommendation: Sell
Resistance: 2977