Technicals - a cluster of global indices have generated sell signals

Angela Mangan

QMG Pty Ltd

It is a significant negative momentum indicator that over the last two days a number of key global indices have generated technical sell signals in a cluster - Dow Jones, S and P 500, Nikkei, ASX200 index and Toronto TSX60. (There is no potential in the near-term for technical sell signals to be generated by any of the key European indices). My most recent Wire highlighted the overbought US market, on a momentum basis, and the parallels that existed with 2007, from a technical viewpoint. The key US indices generated technical sell signals the following trading session.

The ASX200 index had previously generated a technical buy signal at 5543 on 8/12/16 and subsequently reached the nominated upside technical target  located at 5725 on 3/1/17. The ASX200 index has now generated a technical top formation / closed below key support @5750 which has generated a technical sell signal.
The index technicals have turned negative.
The minimum downside technical target is located at 5500 - the minimum expectation for a pullback.

Angela Mangan
Angela Mangan
Technical Analyst
QMG Pty Ltd

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.


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