ASX200 index downside technical target remains located at 5375

The ASX200 index originally generated a technical sell signal at 5833 on 20/4/15. The downside technical target remains located at 5375. The ratio of stock sell signals versus buy signals being generated remains heavily weighted on the sell side which continues to be a negative market momentum indicator - 70 stock sell signals have been generated since 30/3/15 compared to 26 buy signals during the same period. The major bank stocks generated technical sell signals in mid-late April and despite the heavy subsequent falls, there is no sign of base forming which is the requirement to generate re-entry technical buy signals. The A-REITs, major healthcare stocks and select fund management stocks also remain negative sector themes from a technical perspective.