The Philippines Stock Exchange Index (PSEI) is nearing two support levels. A break below both these levels could open the door to a multi-month decline.
The daily PSEI and S&P 500 (SPX) courtesy of Trading View illustrates their recent action.
In the last few weeks, it appeared the PSEI could rally into Fibonacci resistance at the .618 retracement of its January to March decline. However, the PSEI has declined since its 05/19/23 top – a possible important SPX peak.
If the PSEI breaks below the bottom made on 05/15/23 at 6,523.15, and later breaks below the trendline connecting the 03/16/23 and 04/13/23 bottom – it could be a very bearish signal.
Also note that since February 2023 the PSEI has underperformed the SPX. If the PSEI breaks below the two support levels, it could drop faster than the SPX.
The 05/24/23 blog noted the SPX could reach its October 2022 bottom. The PSEI could also reach its October 2022 bottom, except quicker than the SPX.