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 has 30 years experience in the technical analysis field. Angela joined QMG as a technical analyst in May 2014. Angela was the technical analyst at Bell Potter for 16 years, providing technical analysis coverage to the retail and wholesale...
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Hi Angela. I agree with your analysis. Technicals - S&P ASX 200, Banking & Materials Sectors and US S&P 500: http://us10.campaign-archive2.com/?u=c00a28333b2ad686999d57de4&id=fb9c544f6d