Equity markets remain oversold despite a rally

The UK and US equity markets remain oversold despite a rally reducing the extent of the conditions, says Mike Lenhoff, chief portfolio strategist at Gerrard. He believes they will either continue to rebound or their respective oversold conditions will be resolved by a consolidation phase in which they move broadly sideways. He says: 'At this stage, it is not unreasonable to expect a further rebound. For the UK, a rally to above 5000 on the FTSE 100 is a realistic expectation.' Lenhoff adds that the US recession will be evident and the corporate newsflow will continue to be poor. 'A...