Technicals - ASX200 INDEX - potential for secondary technical buy signal to be generated

The ASX200 index previously generated a technical buy signal at 5081 on 3/3/16. The index technicals turned positive at that point, and despite the market volatility, the technicals have remained positive during the subsequent period. The potential now exists for a secondary technical buy signal to be generated. A close above 5170 would serve to re-enforce the expectation for a rally to 5380 - which is the minimum upside technical target. The European markets experienced a positive technical break overnight given index technical buy signals were generated by the EuroStoxx50 index and Dax.