When our market broke into new highs at 3,367 UNCLE SAM gave the PSEi a present – a 320-pt drop in the DOW, this event triggered our markets to gap down right at the open at 3,293… This area which incidentally is also close to the psychological 3,300 level is currently acting as a key level of resistance.
Our market has not really recovered since. We took a poke at the 3,290 level yesterday to no avail, and quickly got sold down. For the last 4 days, our PSEi has been very sluggish. What Uncle Sam broke, Uncle Sam will fix starting tonight. I am expecting a revisit of the 10,000 level tonight for the DOW. And hopefully, we can test 10,300 level again in the coming days.. Of course up to now, the onus is still for the market to go lower.. This now can only be viewed as a dead cat bounce and nothing else.
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