Equity markets have risen for two days in a row, and Wall Street has gained by four percent since Tuesday's open. On the NYSE yesterday, roughly two shares rose for every share that fell, suggesting some substance to the rally. We expect equities to gain from time to time, often sharply, but we are overall bears as the prevailing downtrends remain intact from a technical point of view. On the JSE, a number of shares are oversold - vastly more than are overbought - and this suggests further near-term gains. In recent days, we have shown the charts of the JSE financial 15 index (7032) and industrial 25 index (19095). The former is starting to break above downtrend resistance while the latter held above, and is now rebounding from, well-established range support. The resources 20 index (59268) has reached two-and-a-half year old support from which we expect some strong near-term gains.
