Technicals - Global market trend change has occurred

Angela Mangan

Key global indices have generated technical sell signals simultaneously as a result of last night's sell off - Dow Jones, Eurostoxx 50, FTSE, DAX and CAC. Given this has occurred in a cluster is a clear indicator of a negative momentum shift in the global market trend. The expectation is for a further minimum 4 - 5% decline. The previous instance when there was the simultaneous generation of key global index technical sell signals was in June last year, which foreshadowed the sell off that subsequently occurred. As detailed in the Wire last week, the ASX200 index has the potential to generate a technical sell signal.(VIEW LINK)


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