Initial reactions to the Fed’s decision yesterday to cut interest rates by 50 basis points were strong in the Asian market, providing support for stocks and supporting the US dollar, which had lost strength in recent weeks from its all-time highs.
In Spain, the new push for bullfight will help the strength demonstrated by the Ibex 35 In recent days, it is no longer exclusive to this selective and indices such as the Ibex Medium cap or the Ibex Small caps are approaching their annual highs.
“The good news is that the Ibex Small Caps is about to reach the bullish guideline that comes from adhering to the 2022, 2023 and 2024 lows. From the same could manage to react upwards and then the chaos This would already be total in Spanish actions” predicts Joan Cabrero, technical analyst and strategist at Ecotrader.
In Europe, the new upward dynamic will bring the EuroStoxx 50 to the triple resistance zone of the 4,985/5,000 points. “This is the 78.60% Fibonacci recovery level of the entire last decline from the year’s highs in the 5,121 pointsthe tangency with the downward trend that arises from the combination of the decreasing highs of the last months and an important psychological resistance,” explains Cabrero.
In the words of the technical analyst, its improvement would give “credibility” to the rebound of the European index that was in question due to its evolution, since it left open the possibility that after this rebound there would be another decline.
Wall Street Earrings
Across the Atlantic, the market’s bullish reaction should eventually help the S&P 500 and Dow Jones Industrial Average surpass their year-to-date highs, and the Nasdaq 100, which was kilometers From this resistive zone, accelerate the pace and move closer as well.
“The resistance to control in the technological selective is found in the 20,000 pointswhich stopped the last rebound,” explain the strategists of Ecotrader, “and the S&P 500 should close a week above the 5,670 pointswhich are their highs of the year and their all-time highs, which would eliminate the possibility of a weird scare that would lead the North American indices to test the lows of two weeks ago.
