6th, Daily Report

The session is expected slightly bearish although it could be a day of technical consolidation. Negative macro data in America, doubts in Asia and the uncertainty situation in Europe, so the stocks could continue to fall as this week. Even so, we must be aware of the bond auction in Spain, which could worsen slightly the risk premium. The unemployment data in the U.S. will mark the session because it normally anticipates payrolls data tomorrow.

In the United States, the market has fear of a possible reduction of QE. Especially since after the big spending, the primary goal has not been achieved fully, and they may soon decide to withdraw aid. The NASDAQ, which lost 1.2%, had the best behaviour, while DOW and SP fell 1.4%.

The European markets were affected by some doubts and uncertainty, making them went down together with a worst data of the 1st quarter GDP. There are many reasons that could have caused these falls. Again, the best was the IBEX with a decline of only 0.9%, while the CAC was the worst with a fall of 1.9%. It seems that the difference between peripheral and central Europe markets is more narrow, but we have to wait to see if this continues on rises or only relies on falls. Risk premiums slightly increased, with the Spanish one reaching the 293 points.

In Asia, the market has fallen again causing declines to levels of earlier this year. The NIKKEI fell but only 0.9% driven by the words of Abe yesterday.

For all this, for today's session I expect a technical bounce, but not for fundamental reasons. For the medium and long term, I still forecast a bull market.



INDICES:


S&P 500

Following significant declines, today we approach the projected target of breaking the triangle about I have been talking since several days. That level, placed in the area of 1590 points, is now much closer. It coincides with the Fibonacci 61.8, which is likely to show us a break of the correction and even a potential upside rebound. With the price below the average of 30 sessions and in a clear negative slope, we present an index with a significant downward trend for the short and medium term.

Dax 30

Slightly bullish opening for the German index. However, following the declines in the day yesterday (which made ​​the price pass through the average of 30 sessions), we continue with the double top and with a bearish forecast for the area of 8000 points. As we are waiting for the ECB decision, volatility starts to increase and some change is expected, so it can give us a high probability of declines in the medium term and the index should reach those levels.

Ibex 35

Bullish opening in laterality, but with a clear bearish trend, so we monitor the key area of 8175 points. With an average of 30 sessions in a negative slope and indicators pointing downward, little changes are expected today in the Spanish index until Draghi's speech. I continue considering a bearish trend in the medium term for the IBEX.