This week’s short-term confirmation by the European Banking Sector (SX7R) of a bearish trend that threatens further 4% falls in the banking sector, has exponentially increased the chances of the Ibex 35 returning to the zone of the lowest. 11,130 pointswhich are the minimums for September.
“In this environment of 11,130 points, which are the lows of last September, the bullish trend that has guided the increases since the lows of 2022 continues,” explains Joan Cabrero, technical analyst and strategist at eco-retailer.
However, the hope that the bulls have at the moment in the national selective is beyond our borders. The main European stock exchanges remain on their key supports, such as 10,900 of the EuroStoxx 50 in its Total Return version (not to be confused with Net Return), the 18,900 German DAX 40 points or in the EuroStoxx 50 in its traditional version, 4,600 points.
“Right now, the German DAX 40 is 2.50% away from its key support, which it is expected to lose for the year. German locomotive derail and lose strength”, which still supports those who do not lose their short-term bullish hope.
The other bullish ‘support’: Wall Street on the supports
On the other side of the Atlantic, the North American market debates the short term between continuing its impeccable upward trend or, on the contrary, developing a broader consolidation phase which could spoil the classic Christmas rally usually so common on these dates. “The possibility of seeing this Christmas rally will remain alive until Wall Street indexes close the gap they opened up after Trump’s election victory (I’ll call it the Trump gap from now on),” Cabrero explains.
For this gap to close, the Nasdaq 100 would have to lose 20,000/20,227 and the S&P 500 will lose 5,700/5,782 points. “The risk of seeing the loss of this support would be reduced if the Nasdaq 100 closed the gap of ‘Bear Island’ opened last week from 20,900 points, for which it would have to overcome resistance of 21,070 points“, says the expert who indicates that in this case, a scenario of upward continuity in this last part of the year would be more likely.
In this sense, heThe Biden administration is considering additional restrictions on sales of semiconductor equipment and artificial intelligence memory chips to China, which would intensify a U.S. crackdown on Beijing’s technological ambitions but fall short of some more strict measures previously considered, according to information from China. Bloombergsomething that would encourage the markets in recent hours.
