Technicals - financials to be the likely driver of a further market rally

On Friday, the ASX200 index generated a technical buy signal as detailed in previous wire(VIEW LINK). The minimum upside technical target is located at 5550. The recent cluster and heavy concentration of technical stock buy signals generated in the financials sector was a positive momentum indicator for the sector outlook, and flagged this sector of the market as being the likely driver of the further market rally, from a technical viewpoint. The chart below highlights the potential that exists for a third buy signal to to generated by the financials index (XFJ).