He draw The manifesto of bullish and bearish forces present in the Ibex 35 over the last 28 sessions was shattered yesterday. The Spanish selective distanced itself from the trend of the rest of its continental counterparts and lost this Wednesday the support that represented the lower part of the lateral movement in which the index was immersed in recent weeks.
“It is anything but bullish and it warns us that the bears have taken control of the short-term situation of the Spanish stock market,” warns Joan Cabrero, technical analyst and strategist at eco-retailer which states that “the threat now is to witness a consolidation on a larger scale which could seek, in the worst case, to 10,900/11,000 points“.
Whether or not these levels are achieved will largely depend on intermediate support from the 11,138 pointswhich are the September lows, and which now constitute one of the levels which can help stop a possible fall.
On an operational level, to buy back the Spanish stock market, the most judicious would be to wait for a return to the 10,900/11,138 points. “If this fall were to take shape, I would be in favor of taking advantage of it to buy Christmas gifts” said Cabrero
The EuroStoxx 50, which has already lost the support it presented during the 4,900/4,870 pointsis also open to a broader consolidation phase. In its case, the consolidation phase threatens to bring the continental selective also to the minimum zone of September in the 4,730 points or, in the worst case, the 4,675/4,700 points.
“I would see this as an opportunity to buy European stocks again with a much more attractive risk/return equation than a few weeks ago. In this sense, I think there will be no weakness and I will also not recommend drastically reducing exposure to European equities market while the EuroStoxx 50 does not miss the August lows in the. 4,470 points“, says Cabrero. “I would consider reducing it a little if the September lows in the 4,730 points and especially the 4,675/4,700 pointsi.e. the adjustment of 61.80/66% of the entire last increase since the August lows,” he specifies.
Powell earrings
Even though all eyes are still on Donald Trump’s victory in the US elections, the market’s attention today will be on the Federal Reserve and its Chairman, Jerome Powell, who is expected to announce a further cut in interest rates from the North this Thursday. American country.
While waiting to be official, Wall Street futures suggest a positive start to the day, but with a softened than the view of yesterday, where the bullfight They were euphoric in most US national indexes and led the S&P 500 to record its most bullish post-election day in its history.
