PSE Index Chart Analysis for the Week (June 19-25, 2011)

Figure 1: PSE Index Chart

Our current index is kinda alarming because of the confirmed breakdown from the triple top pattern and yet kinda hopeful that the major support may hold the index from going further down to the ~4025 (Target of the triple top pattern). Anyway, I am still at the wait and see attitude on our market. Limiting myself to buying selectively blue chip stocks that shows some relative strength against the index. Base on the present behavior of the market, I think the index simply bounce off (dead cat bounce) from the major support line. Momentum is simply accelerating downward. If the market continuous to increase this downward pressure then the support line will not hold and the index will probably go down towards 4025.