Equities Continue To Look Weak

Despite the recent bounce in global equity markets, we maintain our bearish bias towards Latin American stocks over the medium term, and are currently looking for short-term resistance levels to hold over the coming trading days. Indeed, with several Latin equity indices currently testing support-come-resistance and 14-day moving averages, a failed break above resistance for several bourses over the coming days would signal further selling pressure to us. However, should a short-term breach above key resistance take place, we may revisit our current bearish Chilean equities view, and look for a more attractive selling opportunity down the line.

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