The technical indicators that support the view that the Australian market has further upside potential

1) The ASX200 index closed above key resistance on Friday, which indicates that the next upward move is underway. 2) The global stockmarket trend is positive - the S&P500, Dow Jones, Nasdaq, Shanghai Composite, Nikkei, FTSE, CAC and DAX all generated technical buy signals between mid-September and mid-October. (The CAC, S&P500 and Nasdaq reached the minimum upside technical buy signal targets last week). Given these index buy signals were generated in rapid succession was a positive momentum indicator for the global market outlook, with this positive global momentum theme highlighted in previous Wires. 3) Over the last month there has been a notable increase in large cap stock technical buy signals generated, which is a positive momentum indicator. The ratio of stock buy signals to sell signals generated has been heavily weighted on the buy side which is also a positive momentum indicator. During the last three weeks there have been 31 stock buy signals generated compared to 3 stock sell signals.