The IBEX 35 has uploaded a 0.2%, up to 7,292.70 points, after failing to rebound (it has hit an intraday high of 7,425 points) after Thursday's tremendous crash on both sides of the Atlantic, which has left the market very touched. Now it is time to check if this is just a correction -very abrupt- to continue with the rebound from the lows of March, or if this is the beginning of the end of this rebound, which for many is not justified given the very complicated situation. After revaluing 11% in the previous week, the most bullish since 2008, the weekly fall of the index has been 7.37%, which gives an idea of the incredible volatility of the market.
Be that as it may, what is at the bottom of the falls is the enormous fear that there is a re-emergence of the virus. Investors – and the world in general – will not rest until they see what happens in the fall, and ultimately until there is a vaccine against the disease, which is not expected until spring of next year.
The Ibex was left this Thursday by 5%. It was the worst European index and suffered its biggest drop since March. In the Old Continent, the decreases were 4% on average, while on Wall Street, Dow Jones sank 6.9% amid Covid-19 rebound in US. This Friday, the New York Stock Exchange rebounds, although in a very shy way.
David Madden, an expert at CMC Markets in London, takes iron out of falls and remarks that "they must be placed in the context of the great gains that have accumulated in recent weeksDanske Bank analysts, meanwhile, acknowledge yesterday's moves. "question the overall story of a smooth market recovery and they will be a point of attention in the evolution in the coming weeks. "
This Friday, inflation in Spain was published, which has dropped in May down to -0.9%, one tenth less than expected. In addition, the UK has released April GDP, with a record slump of 20.4% compared to -18.7% forecast and -5.8% previously.
Thus ends a week that began with the hope of exceeding 8,000 on the Ibex and which closes with the fear of losing 7,000. A week in which the message from the Federal Reserve (Fed) It has left the market uneasy and has had a very different impact than what the European Central Bank (ECB) achieved last week.
The news about possible outbreaksAlong with what governments and central banks have to say about aid and incentives, without forgetting what is being published about vaccines, they will be the great catalysts of the stock markets in the short term. In other markets, the Brent oil falls 0.2% to $ 38.48, while the euro it depreciates 0.5% and changes to $ 1.1238. Besides, the profitability of the Spanish 10-year bond it relaxes to 0.59% and the risk premium falls to 102 points.
TECHNICAL ANALYSIS OF THE IBEX 35
César Nuez, technical analyst at Bolsamanía and head of Trader Watch, points out that now the Ibex will seek support in the 7,000-7,200 zone. This, when two days ago he was attacking the 8,000.
"To confirm the end of short-term declines, we should wait a figure of strength that, for the moment, is conspicuous by its absence. We must also bear in mind the bearish gap left by the Ibex this Thursday at the opening (7,663 points) and which will now function as the first resistance level, "he explains.
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