The Spanish stock market is ready to close the month of August as one of the most bullish references in the market. A few hours before the beginning of September, the Ibex 35 marks a revaluation of more than 2.5% so far this monthoutpacing increases in most of its European and American counterparts over the same period.
Actually, Since 2012, the Spanish selective has not recorded such a high revaluation like the one that has accumulated so far during the quintessential summer month.
Technically, the Ibex 35 managed to string together 18 sessions with this rebound, closing above the previous day’s lows. “This is too vertical a rebound,” warns Joan Cabrero, technical analyst and strategist at eco-merchantwho remembers it “The risk that there will be a correction at any time that would serve to digest this increase is very high”.
“In fact,” the expert maintains, “the door will open to the start of a correction as soon as the national index closes a session below the lows of the previous session, but for that to happen it would have to close a day below the lows of the previous session. 11,329 points“.
The risk of correction in Europe is increasing
In Europe, the EuroStoxx 50 continues to gradually approach the resistance zone it finds in the 4,985/5,000 points. He does this, of course, without first digesting or consolidating any part of the increase,” which invites maintaining the eyes wide open even if the current rebound is still fully alive.
“I wouldn’t be surprised to see a correction in the coming sessions.“The ideal is that they wait for new purchases until a decline forms, which corrects or consolidates at least half or 38.20% of the previous rebound,” emphasizes the expert on the continental reference.
