23th, Daily Report

Today's session is expected sharply bearish for several reasons. The bad Chinese PMI data has caused the Japanese market panic (-7,3%), and it has joined the emerged doubts after reading the Fed's act. The fact that so many discrepancies appeared among its members generated rumors about the continuation of QE. It will be a bearish session, but it is not intended to be a long-term trend.

The U.S. market had a big move either up and downwards yesterday, greatly influenced by the appearance of Bernanke, which gave confidence, but then the reading of the act made it return to the mistrust that caused the final fall. The fact is clear, the markets know but do not want to end up aid. The QE are essential today for increases in the equities. This caused declines in the three major markets. The best was the Dow, which fell 0.52%. The SP lost 0.83% and the Nasdaq 1.11%.

Yesterday's session in Europe was marked by the appearance of Bernanke, whose message encouraged the stock market, but then it corrected and ended with a mixed close. The best was the DAX with a rise of 0.69% while the IBEX, as has happened in the last sessions, was the worst and closed in red, with a loss of 0.02%. In addition, there was a rise in the risk premium above 280 points, which clearly shows that doubts about Spain continue.

In Asia, the market has finally burst. Negative Chinese PMI data (private data, so it is not manipulated), which has caused a drop of 7.3% in the NIKKEI. The Japanese market has such a level of nervousness that the BOJ has had to inject liquidity to not run out of money in the short term. Even so, the Japanese bubble burst does not seem to follow a trend, so it can be a momentary thing.

For today's session I expect a sharp correction of the market, but depending on macro data, especially in the U.S., which might change the trend in the short term or at least reduce the expected fall in the opening. For the medium and long term I continue to expect a bullish continuation. As I have discussed in various reports, the falls are always stronger than the rises.



INDICES:


S&P 500

After the troubles yesterday, which has led the American index to suffer setbacks, it presents a very interesting technical aspect. We see the price, after maximums yesterday, has dropped sharply to slow in the average of 14 sessions. Despite these setbacks, quite common in the SP500, I strongly believe that we must evaluate this as a short-term correction, and the index may attack new highs in coming days.

Dax 30

Like the other European markets, the German index opened downwards with a gap of nearly 70 points. As I said yesterday, the DAX had some bearish divergences that could make a correction. Despite these factors, and although the index has gone down the average of 50 sessions, I do not believe it is appropriate to say the index has a long term bearish trend. However, pay attention to the support of 8141,6 points given by the Fibonacci.

Ibex 35

As for the technical aspect of the Ibex, I warned about a key support in 8377 points, which was drilled yesterday and largely confirmed by the opening this morning. We must be careful, therefore, to fluctuations in the coming days because we have an active downside target of 8,130 points, with all the indicators pointing downward, which can make us confirm the bearish scenario in the short term.