Technicals - ASX200 index potential for technical sell signal
The ASX200 index has the potential to generate a technical top formation / technical sell signal. A close below 5270 is required to generate a technical sell signal, which if this occurs, would target a minimum pullback to 5050 (major subsequent support). The potential for a negative trend change in the Australian market ties in with the US market negative technical outlook, given the 3 key US indices are rated as technical sells. Secondary technical sell signals were generated in mid-October by the Dow Jones and S&P500 indices (VIEW LINK) which was followed by a sell signal by the Nasdaq last Friday. This in turn was preceded by the technical turning point in US 10 year bond yields in August(VIEW LINK)
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.