ASX200 INDEX - MAJOR SUPPORT LOCATED AT 5375
The ASX200 index originally generated a technical sell signal at 5833 on 20/4/15. A secondary technical sell signal was generated at 5615 on 19/5/15 which lowered the downside technical target to 5375 - which is where major support is now located and is the minimum downside technical target / the minimum expectation for a pullback. The sharp decline today has resulted in break below the 5453 support level and has removed any potential for near-term base forming in the ASX200 index. The first technical indicator of a turnaround in the market would be a notable increase in large cap stock buy signals being generated (which is not currently evident), and this would occur prior to any change in the ASX200 index technicals. As flagged in recent QMG wires, a global market trend change is underway given the sell signals generated in early June on the Hang Seng, FTSE, DAX and CAC. The potential also exists for sell signals to be generated on the S&P500 and Dow Jones.
Angela has over 30 years experience in the technical analysis field. She provides technical analysis coverage of major Australian and global stocks / key markets, including provision of a bespoke technical service to wholesale clients.