Technicals - Key indices - no potential for a sustained turnaround in the short-term

My two recent Wires on 14 & 15 June highlighted that the global market technical trend had turned negative due to the simultaneous generation of technical sell signals by key global indices on 13/6/16 – Dow Jones, Eurostoxx50, FTSE, DAX and CAC (VIEW LINK) – . This was followed a day later by a technical sell signal generated by the ASX200 index as a result of the close below the 5300 support level.(VIEW LINK). Given these sell signals were generated in a cluster was a negative momentum indicator for the global market outlook. The aggressive sell off on Friday resulted in the MINIMUM downside targets being reached during intra-session trading by the DAX and CAC. The Eurostoxx50 and FTSE came close to target levels. There is further downside potential for the Dow Jones. The ASX200 index minimum downside target remains located at 5075 – it reached an intra-day low of 5080 on Friday. A period of stabilisation and consolidation will be required for technical base forming to occur at an index level, which is clearly showing no sign of emerging.