The rebound experienced by the main stock indices on both sides of the Atlantic in recent sessions has found continuity at the start of the week and is gaining in coherence. as they add up followers to the cause of bullfighting.
While it is true that selective indices such as the Ibex 35 and the S&P 500 have already managed to reach their maximum zone for the year last week, the photograph market performance improves as more indices are in a situation exceptionally bullish situation and that now they support it, so that, technically, one can be fully sure that the market risks have been eliminated.
The last to join was the Ibex Medium Cap, which managed to break its downtrend and first resistance this week. “Now, it remains for the Ibex Small Caps to join the party. Without all three going hand in hand, do not be surprised that we could see a fall from this market support range. 11,140-11,465 points” warns Joan Cabrero, technical analyst and strategist of eco-retailer.
“Now, if the Ibex Small Caps manages to react upwards from the current area where it is trading, very close to the bullish guideline that comes from the adherence to the lows of 2022 and 2023, and overcomes the resistance of the 8,335 pointswould confirm an upward trend which I invite optimism and prepare yourself, because then I will again look for investment opportunities in aggressive Spanish strategies.“, sentence.
And in recent sessions, the stock markets have managed to move away from levels whose perforation would warn of possible episodes of greater volatility that could cause new falls. This is – first of all – the area of the minima of September 6.
At this point, Cabrero leaves the yellow mark in the 4,740 point area in the case of EuroStoxx 50 and this would separate a consolidation from a correction. In the case of the Ibex 35, the yellow line is located in the 11,173 points which would imply a reduction of almost 5% compared to current levels. “This level would function as a aggressive stop for the operations opened in recent weeks,” says the expert, who invites us to also look at the 18,200 points of the German Dax 40 as a reference for a possible bearish sign.
“The red line, which we must not lose under any circumstances if we want to maintain a bullish scenario in the coming months, continues to be at the August low,” explains Cabrero. Ibex 35 It is just over 11%, at 10,390 points.
For its part, the Spanish stock market index does not find any noteworthy resistance until the highs seen in 2015 and in 2010, they rose to 11,884 (an additional increase of 0.7%) and 12,240 points (3.7%) respectively.
The big boost from the People’s Bank of China
In Asia, the region’s stock markets recorded one of their most bullish days of the year. In fact, it was the Hang Seng’s most bullish session in the past six months.
Hong Kong’s index rose more than 3% and Shenzhen’s stock market rose 2.5% after China’s central bank announced stimulus measures that the market had anticipated in recent weeks to try to meet the economic growth target this year and halt declines in the stock market.
In fact, the central entity has put forward the creation of a stock market stabilization fund to which at least 114 billion dollars will be allocated and will allow brokerage firms and investment funds to tap central bank funding to buy stocks. The move is part of a broader package of policies aimed at boosting the economy that includes cutting the short-term interest rate and lowering borrowing costs for up to $5.3 trillion in mortgages.
