Market Outlook

Unable to keep its head above the 7,000 line, participants will monitor continuity of supply pressure before moving within good trading windows in key index shares.

Should the stocks rally in the following trading days, this could be a good time to

The 6,800 level proved to be a support area last week as the market managed to bounce from said level and closed the week at above 7,000.

Market participants might check if the recent selling would continue, or whether buyers would seize on this buying window to reposition.

Sessions may continue to rally, which would come from the anticipated Fed’s 25bps rate hike.

Buying might be seen, as fund managers seize on yesterday’s drop to position in key stocks.

Volatile sessions may continue, as participants weigh-in expectation from the Fed’s meeting this week, on top of month-end portfolio rebalancing.

It continues to post higher lows overall, cementing its upward trend channel and boosting hopes for a positive mid-term outlook.

While the PSEi broke its five-week winning streak, the recent pullbacks remain to be shallow, further signaling that the bulls are in control.

Expect volatility to continue, with the month-end portfolio closing & prelude to the Fed’s policy meeting this week.

Note, however, that yesterday’s candlestick looks bearish.

Participants might be on a wait-and-see mode following prior session’s performance, as most might seize on the latest strength to cash-out.

Continued momentum is seen, as the PSEi tests scoring near the 7,200 mark.

Again, the index is still flirting with the overbought region, so we can’t consider this a correction just yet.

Movements might stay range-bound for now, pending clear catalysts from the Fed’s next move on its widely-tracked interest rate.