“Short-term bearish signal”: The Ibex 35 is already looking at the November lows after piercing its supports

The Ibex 35 stood out yesterday from the rest of the large stock markets in Europe, registering a day of declines that led it to lose more than 1.5% and which places it in negative territory in the balance of the month, in clear contradiction of what is happening with the reference selectives in Europe.

The national indicator, in fact, yesterday pierced the support that the 11,700/11,725 ​​pointsin what is “a short-term bearish signal that puts on the table the possibility that the falls will continue to deepen and seek support for the bullish trend that has been guiding the rises since October 2022, which currently runs through the area of ​​the 11,300 points“explains Joan Cabrero, technical analyst and strategist of ecotrader.

“If it ends up following that guideline, we would a priori be faced with an opportunity to buy the Spanish stock market with stop at the November lows of the Ibex with dividends at 39,300 pointswhich is where the support is today that should not be lost if we want to continue trusting in a bullish context in the short / medium term“, explains the expert operationally.

Europe digests its latest rise

In Europe, operationally, it is time to remain calm and Do not think about reducing exposure to the European stock market as long as the main European stock markets remain on their key supports. “To simplify your monitoring work“, comments Cabrero, “I recommend that you keep an eye on the one that presents the EuroStoxx 50 in its traditional version in the 4,688 pointswhich are the November minimums.

The closer the European stock market gets to that level, the more attractive the risk-return equation will be, and it will help all the pieces fit together. And this consolidation in the Old Continent could coincide with “a correction that takes the North American indices to levels where they were trading just before Donald Trump’s electoral victory”, providing an optimal entry route for when global stock markets rise. in 2025, which is the technically most likely scenario.

In this sense, for the next correction of the North American market, towards that Trump gap, to be similar in proportions to that seen last August, the Nasdaq 100 would have to previously have an additional upward journey of 8%.

“It would be a real disrespect that would lead the main technological reference to rise to 23,500-24,000 pointsand from there I would not be surprised if the Nasdaq 100 headed to seek to fill the bullish gap opened after Donald Trump’s electoral victory,” says Cabrero.

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