20th, Daily Report

The beginning of a new week, in which the market expects news about the FED and the BOJ. If they talk about inflation, it would be very positive because it would be clear that them could continue the policies of monetary expansion. The scraps are holding the market today: the flow of funds from the BOJ, the central bank support and business figures of the first quarter to give confidence to the market (more in the U.S. than in the EU).

In the U.S. stock exchange, the situation continues with maximums. It seems that the business news and the consumer confidence data are better, with also a low inflation and a clear improvement in the labor and housing markets are showing that the U.S. economy is recovering. These are very positive macro factors and give a lot of confidence, not only to the U.S. market itself but also to Europe. The best performing market was the SP with a rise of 2.1% followed by the NASDAQ and the DOW, which rebounded 1.6% in the last week. So far this year, the U.S. stock market has risen more than 15% in all places. It seems it can have a stop for profit taking, but seeing the current macro data, it does not seem too important.

The sessions in Europe last week had a close in green. Emphasize the behavior of the MIB with a rise of 1.9% thanks mainly to good auctions. The worst of this past week has been the IBEX rise only 0.4% putting us on a rebound of 5.1% per annum (well below the European average). This movement seems to be able to continue if in addition to the expansionary policies of the spoken, there are improvements in debt as we have experienced in recent sessions (10Y bond yield is now below 4.3% which improves clearly the premium risk).

In Asia, the behavior of the BOJ, and macro data increasingly positive, the NIKKEI does not have any restraint and is now at a rise so far this year of 45.6%. The government also reported that it is satisfied with the current growth of its economy.

For today's session, I expect a slightly bullish market after the positive Asian news, with significant increases of the major stock exchanges. For the medium and long term, I continue expecting an upward trend.

INDICES:

S&P 500

Reached the target of 1663, I don't see ceiling for the index of Wall Street. After big gains on Friday, which makes it further away from the average of 14 sessions. Moreover, although I see clearly the upward trend, an overbought level must be considered, which the RSI is giving us since several days.

Dax 30

The German index continues its upward climb. Although the slightly bearish opening today, I think that the index is unstoppable until the Fibonacci target in 8543. The price is also quite far from the average of 14 sessions. This requires us to be attentive to the index, as both factors face the technical impossibility of the DAX to continue this trend for many more sessions.

Ibex 35

The Spanish index remains stuck in its medium term channel launched in late summer. With a flat average of 50 sessions, and volatility clearly in a minimum value, a small upward trend is expected in the IBEX, unless it loses its support, located in 8370.