PSE around with fears

US holiday season extended with an almost 2% gain during the start of the year 2011.

While hitting new highs, we were talking about PSE trying to make away with the inverted head and shoulder pattern.
http://theamazingchart.blogspot.com/2010/12/12-30-2010-year-end-special-back-to.html



Late last week, PSEi managed to attempt to break out of the 4235 points, in order to confirm the inverted head and shoulder pattern, i was actually scared when it went to as high as 4245 pts, which leaves me blank if it really did make a breakout. I am bearish on this one, and want this correction to still persist in accordance to the expected correction also in the US market.

The PSE had a false breakout for the attempt to break 4235, and now got an 86 point drop, which covers PSE with fears, or really just a profit taking mode now? - without any huge drop yet to the US market.



PSE short term is still downtrend, pegging at a light support at 4100. and medium term, heading towards as low as 3850-3900 support, breaking down of 3850-3900 support invalidates our Long term Uptrend.

Lets say we estimate the correction of US to be 5-10%, on a rough idea, 3850-3900 is a very attainable correction for the PSE market.

Lets see what U.S. market can still do to our market, as they are still 50pts away from their 52week highs.