Equities: Beware Of A Correction

South Africa's Johannesburg All-Share Index (JALSH) is racing ahead, and while it looks set to rally a little further over the near term, we believe that a correction is due as the index extends its 13-month high. The market is being buoyed by an ongoing surge in global risk appetite, as well as bullish price action for precious metals which is lifting the many mining stocks listed on the bourse. With these factors likely to remain in place over the immediate short term, we believe that the JALSH can rally to seven-month trendline resistance at 27,500, from its current 27,208

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