Our PSE Market closed at 4274, Above the 4250 resistance level and a very noticable high RSI with negative divergence. Market today is very sluggish with no major moves, except for the huge increase in Mining and Property stocks (breakout confirmed for ALI,MEG,FLI), are these only the small time traders trying to pull up the market? As I assume huge traders are already in "engradeng-vacation mode".
We were trying to define and forecast the movement of our PSE market last http://theamazingchart.blogspot.com/2011/04/pse-market-update-4-3-2011.html , If this is indeed really a breakout of 4250 level, I did not expect this rally to hit 4400 in just 1 month rally, I expect more before we can hit our All time high 4400. Let us see next week if we really did breakout the 4250 resitance towards the 4400 level. Wait till the big investment firms move so we can decipher the correct trend of this market.
U.S. Credit Rating has been downgraded last Tuesday which caused the 1% down for a day, yesterday, market closed on the Positive region trying to get a hint that we already had the short term correction, with the help of Elliot Wave analysis and charts of Mr. Tony Caldaro, I also assume that we already hit the Primary Wave 3 - Intermediate Wave1 - Minor Wave 2 correction, Usually Primary Wave 3 in a bull Market is the longest rally of all waves, but the only concern for me now is the Negative Divegence formed at the 12,500 level.
We are still in a bull market and uptrend cycle, must hope that this Negative Divergence be passed out in order to breakout this 12,500 level. Next stop is 12800 and 13200 assuming a successful breakout (target for Minor Wave 3 and minor Wave 5 respectively).
Happy Lenten Season!
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