The ASX200 index previously generated a technical buy signal at 5543 on 8/12/16 as detailed in an earlier Wire (VIEW LINK). The subsequent rally has resulted in the nominated minimum upside technical target located at 5725 being reached today, which was the minimum expectation for a rally. The ASX200 index technical outlook remains positive given there is no sign of a technical top formation emerging. It is worth noting that the ratio of open stock buy signals vs sell signals remains weighted on the buy side, which is a positive momentum indicator. Recently an increased number of large cap industrial stocks have generated buy signals which is also a positive momentum indicator. However, it is also important to note that as a result of the market rally a number of stocks have also progressively reached buy signal target levels, most notably including the major banks, which are now rated as technical holds (rather than buys).
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