If we are to compare the DJIA with our Philippine Stock Exchange Index (PSEi), there is, surprisingly, a discrepancy.  The DJIA has undergone a consolidation phase that turns out to be bearish. It breaks down a bit and rallies past the breakdown point.  Our PSEi however, has never broken its uptrend since March 2009.  There were instances where it looked like the market was going to go into a bear market, from January to February 2010, and May 2010.  But these were not enough to cause panic in the market that would have led to a break of the primary support line.  In fact, the PSEi has made 30-month new highs.

The moving averages still confirm that we are still trending upward as the index continues to pull away from the MAs.  Once again, the MAs are set up in the bullish firing order of the 65MA above the 130MA and the 130MA above the 260MA.

The MACD continues to oscillate above the zero line to confirm the bullish trend in the market but its momentum has slowed due to the recent correction from the high.

We can still set our sights on the upside target of 3540 for the index but we should also expect a correction to come soon.  In the meantime, we should still take advantage of some opportunities in the PSEi.

Recommendation: Buy selectively
Support: 3360