The stock markets are already less than 2% away from the supports that would change the pace of the market

The forecasts of less aggressive behavior by the Federal Reserve in its process of cutting interest rates is marking the evolution of the stock markets in recent sessions. The best example of this is the progress of US dollar revaluing close to 4% from the lows marked at the end of last month collected by the development of the Dollar Index, which records the evolution of the greenback against a weighted basket of the world’s most traded currencies.

The trend has also been reflected in a more consolidative context of the stock markets. In fact, the one developed by Ibex 35 In recent days – a side with a slight negative slope since it first reached the resistance zone of 12.00 integers – has led it to approach the base of the channel in which (technically speaking) it moves.

It is about the 11,560/11,600 pointswhich “is what I have been indicating for days as being the yellow line or support that must be monitored because its perforation would alert us to bullish exhaustion,” says Joan Cabrero, technical analyst and strategist at ecotrader.

The expert highlights that “there is the level whose transfer would invite us to reduce exposure to the Spanish stock market a little and collect partial profits, but as long as that support and yellow line are not lost, the bias of trading should remain bullish.” For now the selective remains at 2% of these levels.

Closer to its supports is the EuroStoxx 50, which is just over 1% from the support it presents in the 4,900 and 4,870 points. “We could see a broader consolidation phase, which would not surprise me if those levels are lost,” adds Cabrero.

“The good news is that if that broader consolidation finally forms, which could take the EuroStoxx 50 to the September lows in the 4,730 points“I would see that as an opportunity to buy the European stock market again,” highlights the expert who emphasizes that as long as the EuroStoxx 50 does not lose the September lows in the 4,730 pointswhich is where the yellow line is, is not in favor of reducing exposure to the Old Continent stock market, and That level is still 3% away.

WhatsAppTwitterLinkedinBeloud