27th, Daily Report

Week of corrections after the bad news about the Chinese PMI and the uncertainty caused by Bernanke's words. Expansionary policies will continue but not indefinitely and this has not pleased the market, which has lost some levels. Japan lost much strength, but since November it carries a 80% growth, so the profit taking was obvious. Now, we must analyze whether Kuroda generates enough confidence to reduce the volatility of the Nikkei. And in Europe, the measures taken on Monday on the deposit market where they secure all deposits under € 100.000 generate tranquility on investors. In addition, this report provides information on the reduction of losses of shareholders and subsequently bondholders. For the beginning of this week, I expect an upward movement of the stock exchange in the U.S. by closing far from the lows, but not in excess.

The U.S. market is closed today. Last week it ended in losses, but they were minimal, as the DOW fell only 0.3%. The SP and NASDAQ fell 1.1% and 1.3% respectively. The reasons were also the bad news in China, which generate some suspicion about the possible American exports. Beyond that, be analyzed as the week begins tomorrow to see if the market recovers, which is quite likely to happen.

Last week the European market, like the rest, was stained in red with quite strong losses. The worst were the MIB (-4%) and the IBEX (-3,7%). However, the worsening of the bonds is not that strong. For this next week, I expect a rebound, but depending on macro data and business results, which will definitely be determinant for the market.

In Asia, corrections continue, caused in part by the Chinese PMI but in turn by rising since November last year. Technical corrections may be considered after excessively strong rises. We will have to see when it ends. In turn, Kuroda should reassure the market to reduce the volatility of the NIKKEI because it generates some distrust. This morning it has fallen back by 3.2% (-9% in the last 3 sessions) and it is now at 14.000, turning on the key support.

For today's session, I expect an upward trend after the positive closing in the U.S. market (far from the lows) and having lived strong falls last week. For the medium and long term I continue expecting a bull market.



INDICES:


S&P 500

Closed today.


Dax 30

Bullish behaviour in the opening today. We continue to monitor levels of 38.2 Fibonacci correction. Despite recent declines, while these levels are not missed, I continue to see an upward trend for the index. Technical indicators and the average of 30 sessions also present a bull market.

Ibex 35

Slightly bullish opening in Spain, after a strong correction last Friday. High levels of volatility in the Spanish index, and the technical analysis indicates bullish signs of exhaustion. Average of 30 sessions in a clearly negative trend in the 4 hour chart. We monitor the key support in Friday's lows, located in the 8196 points.