The ongoing weighting towards large cap stock buy signals continues given RIO has generated a technical buy signal, and BHP a secondary technical buy signal on...

The ongoing weighting towards large cap stock buy signals continues given RIO has generated a technical buy signal, and BHP a secondary technical buy signal on Friday. It is a positive technical indicator for the resource sector and the overall market that these two buy signals were generated simultaneously. This follows recent technical buy signals generated in select major bank stocks. The potential also exists for further technical buy signals to be generated. Large cap stock buy signals started to be generated in mid-October which was an early technical indicator of a momentum turnaround commencing on the Australian market. It is what is occurring technically at an individual stock level that is more significant and effective than the index technicals in the early identification of the market turning point and shift in market momentum.