How short joy lasts in the poor man’s housesays the Spanish proverb. The truce that yesterday gave the market the election of the new Secretary of the Treasury, Scott Bessent (to the liking of the market as shown by the evolution of the sovereign and dollar debt since its name was announced), it has not been very prolonged and today it is broken by the declines of more than 1% – which were even greater during some moments of the day – recorded by the Asian stock markets, which have the Nikkei as the main affected.
The statements of the new president of the United States, Donald Trump, announcing on his social network that The United States will impose additional tariffs on China, Mexico and Canada, raising concerns about its policies.
However, despite the consolidation of recent weeks, the supports of the main European stock markets still remain standing. This is the case, for example, of the 10,900/11,000 points of the Ibex 35, whose perforation has not materialized. In fact, for now, the national index “continues to remain strong and in a price zone that is in no man’s land,” explains Joan Cabrero, technical analyst and strategist at ecotrader.
Nor have the supports faced by indices such as the EuroStoxx 50 in its Total Return SX5R version (which takes into account the distribution of dividends) in the 10,900 points (corresponding to the August minimum) as the 18,900 points of the German Dax 40, the other major index that since ecotrader monitoring is recommended.
On the other side of the Atlantic
In the short term, the North American market is debating whether to continue its impeccable upward trend or, on the contrary, develop a broader consolidation phase that could ruin the classic Christmas Rally that is usually so common at this time.
“The possibility of seeing that Christmas Rally will remain alive as long as the North American indices do not close the gap they opened upwards after Trump’s electoral victory,” explains Joan Cabrero in that sense.
For this gap to close, the Nasdaq 100 would have to close below 20,000/20,227 points. “The risk of witnessing the loss of this support would be reduced if the Nasdaq 100 closes the gap in the Bearish Island which opened last week from 20,900 pointsIn fact, in that case a scenario of bullish continuity in this final stretch of the year would be more likely,” says the expert.
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