The weakness that the Ibex 35 had experienced until yesterday, especially after the cancellation of the series of twenty consecutive sessions closing at the previous day’s lows, disappeared for a moment. stroke of the pen in the last hours, with the selection that will seek the maximums of the year in yesterday’s session.
In fact, during the year the Ibex 35 has already increased by 12.8%, which means doubling the profitability of the EuroStoxx 50,
“This move means that for the moment we are seeing a simple sideways consolidation instead of a deeper correction as we have seen in the rest of the stock markets on both sides of the Atlantic,” explains Joan Cabrero, technical analyst and strategist at eco-merchant.
“Now,” the expert continues, “I can already identify key supports in the very short term in the 11,138 pointswhich are last week’s lows. If this support were to disappear, I would be in favor of reducing positions on the Spanish stock market, because in this case it is likely that we will see a decline towards the 10,870 or 10,735 pointsThis is where I suggest waiting before increasing positions in the Spanish stock market.
In Europe, despite the last sessions of increases, the risk remains that the decline will intensify at least towards the 4,670-4,650 EuroStoxx 50 pointswhich corresponds to the 61.80/66% adjustment of the last rebound. “The rebound that we see in the short term from the 50% correction level makes it vulnerable,” Cabrero explains.
In the 4,585 pointswhere the base of the channel that has guided the rises of recent months is located and is the Fibonacci adjustment at 78.60% of the last rebound, “I would be in favor of buying the European stock market again as long as it is assumed that in the “worst case (in a bullish context that I will defend as long as the S&P 500 does not lose 5,000 whole points) the EuroStoxx 50 could go for the 4,400 point area”, specifies the expert.
Asia’s “ugly duckling”
In Asia, increases also prevailed in the vast majority of the region’s major markets, with one exception, Japan. Nikkei distances itself from the general trend of the market during the session and is recording declines of more than half a percentage point on fears that monetary policy moves by central entities in Europe and the United States will eventually change the BoJ’s roadmap.
Yen rises against dollar for fourth consecutive day (and emerging market currencies in the Asian region) after macroeconomic data released in the United States in recent hours further supported expectations that the Federal Reserve will further ease its monetary policy, helped the stock market of an export-oriented economy is one of those suffering the most on the last day of the week.
