Many equity indices saw strong rallies last month, accompanied by much cheerleading and media hype. Yet we are not impressed? This could be a repeat of October last year. The bounce takes an A, B, C-type classic Elliott wave format where C is almost the same size as A; target reached. It appears to have stopped at the 50 per cent correction level, another classic countertrend signal, which happens to align with the 26-week moving average; this and the nine-week one are still bearish, as is the Ichimoku cloud, which steps down a sharp notch in February 2016. We are trading below January 2014's (6,750) opening price - a disappointment for fund managers.