ASX200 index now approaching further key support, which if broken on a closing basis, would signal next major downward move. (The index had originally generated a technical sell signal at 5599 on 5/9/14). Worth noting in the large cap area that 16 of the top 20 ASX stocks have previously generated technical sell signals, which was clearly a negative indicator for market outlook. The first indicator to signal an early (upward) shift in overall market momentum would be an increase in the number of stocks showing signs of base forming, and this is totally absent at the moment. Negative view of the Australian market remains firmly in place.
Strong rally off the lows today - does this impact the technical signals?