My refusal to join the sellers is paying off so far. Both the DAX and the FTSE rallied on Friday. The UK index still looks much the better of the two from a technical perspective and it is there that I am really looking for further buying opportunities. Monetary conditions are benign, seasonal factors are in favour of equities, and the uptrends remain in good shape. These are not circumstances in which I would generally be looking for big sell-offs, which is why I think the bears are on a hiding to nothing.

Meanwhile, I am projecting further near-term downside for the pound, both against the Euro and the US dollar.

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