Technicals - potential for ASX200 index and key US indices to generate buy signals

Just over a week ago the view was expressed that the risk remained for a renewed sell off on the Australian market. This secondary pullback eventuated, and was a key requirement if technical base forming is to ultimately occur. The ASX200 index originally generated a technical sell signal at 5833 on 20/4/15 and the technicals have remained negative since that time. The potential now exists for a re-entry technical buy signal to be generated. This has coincided with the potential also emerging for the Dow Jones, S&P500 and Nasdaq to generate re-entry technical buy signals. (The Dow and S&P500 had previously generated sell signals in late June). The coming days will be significant from a technical perspective in terms of whether buy signals / a positive trend change occurs at an index level both in Australia and the US.