Technicals - ASX200 index - key resistance level to watch located at 5540

The ASX200 index key resistance barrier is located at 5540, which originated in May 2015. A close above this level if it occurs would signal that next upward move. Major subsequent resistance in that scenario would then be located at 5725. I pay particular attention to the overall ratio of ASX200 stock technical buy vs sell signals being generated, and situations when stock signals within a sector or category are generated in a cluster. Therefore, it is potentially significant (positive) for overall market momentum that the potential has now emerged for new technical buy signals to be generated in a cluster by an increased number of large cap industrial stocks. These obviously will still need to translate from potential to actual buy signals to have significance for overall market momentum. In the near-term 5540 is the key technical level to watch.