June 11th, Daily Report

The session today is expected slightly downwards due to the bad news that were released yesterday. Poor Chinese data, lack of news in Japan about possible new measures and an improved outlook to stable in the U.S. impelled downward in the opening. But the lack of relevant news seems that will not cause a very volatile session.

In the United States, the market has more doubts because yesterday the S&P 500 changed the economic outlook from negative to stable. Normally, this news should be taken positively, but the opposite happened for fear of a slowdown in QE. For today's session we should expect a bearish continuation. Yesterday the best was the NASDAQ that lost 0.01%, followed by the SP (-0.03%). The worst was the DOW, which fell 0.13%. The problem is that the three indices ended far from highs.

In the European market, the most important today will be the decision of German court on OMT program of ECB, and the British industrial production data. But these news don't seem to cause big changes in the session. Yesterday's session was mixed, with a rise of 0.6% of the DAX while the worst was the MIB with a fall of 0.6%. The IBEX lost 0.5% and is closer to a flat performance so far this year (0.7% increase in the 2013). On the other hand, fixed income remained steady yesterday.

In Asia, economic data in China continued its effect. In addition, the NIKKEI was affected by news of his country, which seems not to carry out more expansionary measures, and lost 1%.

With these behaviors, we should expect a bearish session for the stock market. In the medium and long term, I still forecast an upward movement.

INDICES:

S&P 500

Crucial moment for the Standard and Poor's. The bulls were unable to resist the bearish channel that is drawed. Therefore, it seems quite likely that the price will head back to the area of 1596 points, coinciding with the bottom of the channel. We should wait for the price confirmation when it breaks the average of 50 sessions.

Dax 30

Interesting moment for the DAX. As in the S&P, We see how the bulls were unable to resist the bearish channel that the index presented in the four-hour chart. With the downward pressure in the European exchanges, I see quite likely that the German index will approach back to the support area, around the 8000 points. This level coincides with the double top target that I explained last week. Indicators giving bearish signals.

Ibex 35

Bearish pressure for the IBEX. After falls in Japan, the red color turns to own the index, again. We must be vigilant to the closing today, because in case of closing below the support area presented, I really see a significant downside investment opportunity. Therefore, with the price below the averages and increasing volatility, I estimate that sellers will take control of the Spanish index.