The Philippines Stock Exchange (PSEI) could make an important top in early April 2023.
The PSEI decline from 01/24/23 to 03/16/23 was in the form of an Elliott wave impulse pattern. The five wave drop could be the first part of a much larger bear phase lasting several weeks or perhaps months.
The daily PSEI chart courtesy of Trading View updates the action.
If the Elliott wave count is correct, the rally that began on 03/16/23 would be Minor wave “2” of a larger developing five waves down. Wave “two’s” typically have deep retracements of wave “one’s” , usually at least 61%. The broad target zone is from about 6,805 to 6,990.
Daily momentum indicators suggest the current rally could continue for at least one or two weeks.
Daily RSI could get to the overbought zone which begins at 70%.
Daily MACD lines could top at or just above the zero line.
The time forecast is based on a possible S&P 500 (SPX) top on 04/11/23 or 04/12/23 which was illustrated in the blog “Possible Important U.S. Stock Market Top – April 2023”. The PSEI made its 2023 high on 01/24/23. The SPX 2023 peak was on 02/02/23. Its possible a PSEI April 2023 peak could come a few days before an SPX top. The PSEI wave “2” target zone begins on 04/05/23.
If the PSEI exceeds the 01/24/23 top it would invalidate the Elliott wave count and open the door for more upside action.
What happens to the PSEI in the next two or three weeks could be the prelude to a large decline.