The PSEi had a good run last week…or so it seems.

Yes, the market rallied from recent lows to rise by 152 points in three days.  Sounds great right?  I kept wondering where the volume was while it was rising.  Due to this, I’m not convinced that this is the bull market that everyone is waiting for.

The short-term resistance has been broken.  However, without the volume accompanying it, I feel that the index can fall back easily to where it came from.

Seeing where the PSEi is going, it is now safe to assume that the nearest resistance would be 2977, the previous support that broke following the double top.  After that, the next resistance would be at 3015, where the 65-day moving average is located.

The MACD is showing us that this is definitely a rally.  The question now is can it be sustained, especially since volume is lacking?

The safest thing for us to do is to sell on strength, until the market shows us a confirmation that the market is on its way to higher levels.

Recommendation: Sell
Resistance: 2977