Volatility has gripped the markets in recent hours. Wall Street’s main indices recorded declines yesterday that caused the Nasdaq 100 to lose 20,000 points, while the odds of a Fed rate cut in November of 25 basis points decreased significantly. And today, in Asia, this trend continues with declines in the Hong Kong stock market reaching around 10%.
In Europe, all eyes are on Ibex 35 and in the technical figure conceptually known as to come back either go back to the zone of former resistance that was taking place in recent days, which promised to bring the Spanish team closer to 11,470 points. This figure was opposed yesterday by bulls, who pushed the Ibex forward by half a percentage point, removing it from this level and from bull market support. 11,138 pointswhich are the minimums for September.
“However,” says Joan Cabrero, technical analyst and strategist at eco-retailer“I still refuse to exclude that there could be continuity of the digestion phase started at 12,000 points and we could see more declines before we see the bullish recovery”
And even more so if we contextualize the situation of the Spanish index with the growing geopolitical tension, the volatility of the Chinese stock market in recent hours, the fears of a slight drop in interest rates from the Fed and the falls in yesterday of Wall Street. tech companies, which make people suspicious.
“Operationally,” continues the expert, “to buy, I insisted that the best thing to do was to wait until the last big increase was corrected and that is what we are doing for the moment, SO You have to think more about buying than selling on the Spanish stock market“.
Wall Street Earrings
European stock markets, however, have their eyes fixed on what is happening on the other side of the Atlantic, where The Nasdaq 100 continues to be seen as one of the great directors markets. In fact, its behavior is being monitored since the loss of support for this selective is what can alert the rest of the indices in Europe that the situation is not as bullish as previously thought.
“The decline we have seen in the short term serves to digest part of the recent strong increases, after which I understand that the upward trend will continue to prevail,” reassures Cabrero. “These North American market declines will not be dangerous for bull interests as long as they do not deepen below the lows set by the indices in September.which in the case of the main technology index Nasdaq 100 is located in the 18,400 points (yellow line),” he said.
Before that yellow line and support at 18,400 points, the Nasdaq 100 finds intermediate support at 19,350 points, from where it recently opened a wide bullish gap and which could also coincide with its bullish trend that arises from the junction with the lows of August and September.
Volatility “reigns” in the Chinese stock market
THE volatility it is to be the great protagonist of the day. Especially in Asia, where the Hong Kong stock market has begun to cash in the strong gains accumulated over the last three weeks – they have exceeded 35% in the last 15 days – with a decline that has managed to sometimes exceed the one-time 10% . session, never seen since 2008.
Disappointment spread among investors and analysts after The press conference at which it was planned to reveal the implementation of economic recovery measures did not meet the expectations raised.. A feeling that echoes that recorded yesterday on Wall Street, where sales of the country’s technology companies, the geopolitical threat and fears of a smaller rate cut by the Federal Reserve have dragged the American stock market towards record figures in the red .
This behavior contrasts with that recorded by the Shanghai Shenzhen index, which after being closed since last Tuesday and having lost a good part of the gains recorded on the City State stock exchange, tries to catch up with its Hong Kong counterpart, recording increases of 6%but at the opening they reached 10%.
