Are Australian Equities Ready to Bounce?

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 |  Includes: EWA, XME
by: Clive Corcoran

Perhaps the best tactical opportunity for those looking to scalp a bounce on an ETF which has suffered recently and is about to confirm the "death crossover" isEWA - which provides exposure to Australian equities. The renewed enthusiasm regarding China's growth has a direct impact on Australian equities - and the Aussie dollar - and at present there seems to be a bit of a bandwagon developing for the notion that China will lead the world away from the real risk of a double dip.

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This bandwagon may not last long but it could lead to some upward price pressure on a variety of risk assets, including industrial metals, (consider XME for a quick bounce as well), and could be seen as lending some more credibility to the potential emergence of a right shoulder for the S&P 500.