UPDATE: PSE Outlook of the Week

Figure 1. PSE Weekly Chart

There are a lot of questions going around about what is going on our current market today. Are we going to experience the same faith that had happened in 2008? On my analysis of the current market behavior I think that won't happen yet these year. What we are actually encountering right now in my own opinion is just a healthy market correction. The long breather that the market has been waiting since June of  2009.

Looking at the chart above, if I'm not mistaken the nearest major support line base on fibonnaci projection is at 2892. This also somewhat corresponds to the fibonnaci fan's third support line. If all things will fail this might go as low as the 50% fibonnaci support line at 2790.

The RSI reading is still bullish at 52. This reading also confirms that we are near a major support line. The MACD is also bullish with a reading above the zero line.

PSE weekly trend is moving sideways to up in a strong trend strength.

Figure 2. PSE Daily Chart

Looking at the daily chart, the PSE is moving downward in a weak trend strength.

The RSI is near the oversold area of a downtrending market.

The MACD is also bearish this time.

Figure 3. Elliot wave

Based on my chart analysis based on Elliot wave, if I'm not mistaken we are just at the wave 3 of the supercycle. Take note a valid wave 2 usually retraces 61 to 70 percent of wave 1. Inside that wave 3, what we are experiencing might be just the wave 2 and to be followed by a bullish wave 3 again.