The Ibex is behaving very volatile this Wednesday. At this time it recovers and turns green thanks to the increases in Inditex or the energy ones. However, the lifting of the veto on shorts is still noticeable (yesterday the selective fell 2.5% affected by this decision) and titles such as Bankia or Sabadell they fall sharply and mark new historical lows. Experts acknowledge that it is “very tempting” to get short in the countries that are suffering the most from the crisis.
This Wednesday they are published the minutes of the last meeting of the Federal Reserve (Fed), in which investors will look for clues on what to expect from monetary policy. In addition, the UK CPI for April has been known (0.8% vs. 0.9% expected and 1.5% prior) and the CPI of the Euro Zone (weakened to 0.3% in April, down from 2016).
In Europe it will also be published preliminary consumer confidence in May. “It is probably too early to expect a rebound in consumer confidence, but it is one of the things we hope for in the coming months, especially now that we are seeing a gradual reopening of many countries,” experts at Danske Bank said.
The latest positive stimuli in the markets, with that hope of a vaccine from the modern American company, they have faded. An article in ‘STAT News’ explains that the Phase I trial of Modern It lacks sufficient evidence, casting doubt on the study.
In the UK, several Bank of England politicians, including Governor Bailey, will speak this afternoon. “We will look for signs of where the policy committee is moving regarding the reduction of rates to negative territory“they add from Danske.
Regarding the technical aspect of the Ibex, Bolsamanía experts acknowledge that “the feelings are not good”. On the side of the supports, the only one to hold on to at the moment cannot be other than the lows of last week and the origin of the last rebound: the 6,420 points. Below, we only have the bullish gap of 6,230 points and the annual lows, at 5,814 points. While on the resistance side, and while it is true that we have several at relatively close levels, the key is at 7,210 points. Only above the April highs will we clearly move away from the danger zone.