First the bad news.  The PSEi continued the downtrend from last week due to the fallout from the Golman Sachs fiasco in the US.  We reached a low of 3145, coming from a high of 3322.  The good news is that we’ve rebounded from the recent low to close slightly higher at 3244.  Better than the week’s opening of 3232.

The question now is where do we go from here?  Based on the last few days’ performance, it looks like we still have some momentum to move higher.  The moving averages are still confirming that the index is still bullish.  However, the MACD is entering a correction phase.  But with the recent days’ moves, the descent seems to have been arrested and may soon start ascending again.

Should this really be the case, there are going to be opportunities that will present itself.

Recommendation: Buy selectively
Support: 3178