The Philippine Stock Exchange Index (PSEi) outdid itself this week as it raced to come near the all time high of 4563.  This is definitely a good sign as it already negates the initial bearish pattern we thought was going to take place.

Much like the DJIA, the index has been trading much higher than the moving averages to give us some upward momentum.  The moving averages have yet to reestablish the bullish setup but that could happen in the next few trading days.  The MACD has also found some newfound momentum but it needs to rise to a level higher than the high it set in April 2010 to get rid of the bearish divergence.

Because the PSEi has found some renewed interest, this may be a good opportunity for us to look for bargains as many of the other stocks will take their cue from the index issues.  Happy hunting!

Recommendation: Buy
Support: 4400