The uptrend in stock markets which started after they hit their lows in March has ended, Royce Tostrams, technical analyst at Tostrams Groep said Friday.
"Overall on the world's stock markets there's selling pressure coming into the markets," Tostrams said. "Remain on the sidelines. Don't enter the market too soon," he warned.
"For Wall Street, I expect the market to fall further," Tostrams told CNBC. "My target for the Dow on the downside for the short-term is 7,750 points, which is the low of May. If this low gives way and we fall below this support, then we could easily see the March lows of about 6,570 points."
The Netherlands' AEX index is "suffering under some selling pressure," he said. "As long as the downtrend is still intact, you have to be on the sidelines."
As the yen gains in strength, the Nikkei 225 Average weakens, Tostrams pointed out. "Falling below the support of 9,500 is a 30-day 'sell' signal on the Nikkei index. It could easily fall towards 8,500 levels formed in April of this year."
The only Asian index not suffering selling pressure is the Shanghai Composite index, he noted. "The greater China index is the only stock market with upward potential."