– How do you see the state of Wall Street after the presentation of most of the accounts for the first quarter of the year?
Let’s take a look at the world’s leading index of stocks, which is the S&P 500. US indices have entered a corrective phase, the market breadth has worsened, but this corrective phase is in a sideways range. Look, we got to around the 4,190 mark area, then we had a correction to 4,050, from there we’re pulling up and we’re attacking the upper side of the sideways range. Here, already seeing that the market breadth has started improving from now on, well, a confirmation, a perfect close above 4,170-4,171 marks gives us confirmation that the worst is over and from here We return to a more upbeat tone. , at least there is a high probability that we can continue to move upwards with greater clarity. Hence, the 4,171 mark and if it breaks it, we will have the 4,270 mark as a possible target level to consider. And later, well, we have a maximum of 4,300 points at the end of the day, around 4,303, on August 16th, 2022. So the market may now start to correct, even if it hasn’t worsened, as we’ve seen practically nothing in lateral range in the S&P 500 and the NASDAQ on the other hand has had a corrective phase that is absolutely has also not been corrective. On the contrary, in fact, the lateral range was clearly broken higher when it crossed the 13,190 area, overcame it, corrected afterwards, and then returned to pull strongly. And now, in the case of the NASDAQ, we’re looking for an attack on 13,651, which is the August 2022 high. Breaking that level would be very, very good news on a technical level, as it is already indicating that this bearish divergence that we had, or in this case, divergence with bullish implications, will begin. So then we would already have 14,873 as the most likely scenario for the medium term. If we look at the Russell 2000, which has been the index, in this case, it has been punished the most throughout the financial crisis and given the skepticism of a possible economic crisis to come, we see more weakness in the case of the Russell 2000, the key Will be in the first over of 1,812.3 points. If we see, it will be very likely to see Russell again in the environment of 1,889 points. So in order of strength we have the NASDAQ, then the S&P 500, and finally the Russell 2000, which is the weakest.
– Do you still see something better for the European stock markets?
We continue to see strength in Europe. Note, in the case of the EURO STOXX 50 it is breaking the resistance. Well, it didn’t break this resistance level, 4,400, but it still broke the previous resistance, which was at 4,320, and this indicates to us that it is most likely that it will eventually break the 4,400 mark. And after this corrective phase that we’ve seen and the support of the technical indicators and the move above the 50 average, they tell us that clearly the European market is still very strong. But hey, we’re going to do a comparison with the S&P 500 to see if we really have more or less strength than the North American market, we’re going to do the comparison via RSCMansfield, which is a is the indicator that allows us to see what is the relative strength. We compare this indicator with the S&P 500, which they say leads the world’s stock markets, and well, we see how the European market is now. If we look, the relative performance of the European market right now is slightly worse in the EURO STOXX 50 than in the S&P 500. So, in the short term, the EURO STOXX 50 is probably losing a bit of strength compared to what it is now. s & P. However, the same is not the case with the German Dax. If we look at the DAX it is stronger than the S&P 500 and if we look at the S&P 500 book very quickly we see that the relative strength is less. With that said, Dax is the strongest index we have in Europe and one to keep an eye on. In the United States, the NASDAQ and in Europe, the DAX.
– Ibex 35 has been stuck around 9,200 for a few days now. What would you do in this situation?
Wait, never mind, wait, because we’ve seen that we’re going downhill. The high remains in the same position, so if it breaks 9,526, we are talking about a triangle break and, therefore, a bullish impact and concern as long as it does not lose the 8,900 mark. There’s no need to. moment. We have a sideways range, yes, less strength than DAX, EUR STOXX 50 and S&P 500, but for now it is holding and the trend remains positive. So keep
– What prices do you find most interesting in this context, on Ibex and outside the Spanish stock market?
We’re going to discuss what’s strong, which we’ve been discussing in recent weeks. Nothing has changed: ACS, Iberdrola, Aena, Amadeus, CIE Automotive, Ferrovial and Inditex are the strongest in the IBEX 35. Or on Ebro Foods and IBEX Small CapMetrovacesa or Tubasex. These are all stocks that show strength, that doesn’t mean we have to stay in them for now, we have to look for entry points but keep them on the radar to buy at the time of correction as they continue to show strength .
– Do you think it’s time to be in gold?
Now is the time to correct. If the market, which in this case, we are seeing how it is not so actively seeking refuge now. In other words, if it is possible to move towards riskier assets, such as variable income, then in this case gold suffers. We’re looking at losses to $1,963 an ounce, and a daily close below those levels could see a retracement to the high of $1,900. This will not change the trend, as the trend will continue as long as it remains above $1,800. The trend is bullish, but it is time to correct in the short term and therefore now would not be the best time to open long positions.