Technicals – the financial sector to drive the Australian market higher

The overall ratio of stock technical buy signals vs sell signals is currently heavily weighted on the buy side which is a positive momentum indicator, and fits in with the ASX200 index technical buy signal (upside target located at 5380). In the financials sector over the last fortnight in particular, there has been a heavy concentration of financial stock new technical buy signals generated in a cluster / in rapid succession - including 3 of the 4 major banks, select regional banks and select asset management stocks , which puts the financials sector on the radar as having the potential to rally. The concentration of buy signals in this space is a positive momentum indicator for the financial sector outlook and also the overall market outlook.