The Philippine benchmark index slumped 1.5 percent, or 112.73 points, to 7,424.52 by the closing bell on Wednesday.
Juanis Barredo, chief technical analyst at stock brokerage giant COL Financial Group, told InsiderPH the PSEi was ripe for a pullback anyway, despite bullish market conditions.
Possible bounce areas for this retrace were from 7,300 to 7,100, he said.
Can it break 7,000?
Barredo said a correction to 6,800 is not off the table, when considering chart-based technical indicators.
Nevertheless, he noted that this current bull run is not yet over.
This correction and consolidation could go on for a few months, potentially extending into January or February next year. This sets the stage for a swing back to 7,850 and even 8,200, which are the key resistance zones after 7,550.
The selloff on Wednesday was led by blue chip stocks BDO Unbank Inc. (-2.35 percent) and International Container Terminal Services (-1.87 percent) while Ayala Land finished flat.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
