That the bears are in command of the market in Europe, is something that no one can deny. Everything points to the Euro Stoxx 50 It will close today what will be its eighth month of declines of the nine that have passed so far this year.
And the continental market still has room to fall. And it is that, the transfer of supports in the DAX 40 and even in the EuroStoxx 50 Total Return raises the possibility of witnessing a fall towards the zone of the 11,000/11,300 DAX 40 points and dovetails with a deepening of the correction of the EuroStoxx 50 towards the 3,000 point zonewhich is where the European stock markets were listed just before the appearance on the scene of the Pfizer vaccine and whose scope would mean a correction of 61.80/66% of the entire rise from the lows of 2020″, highlights Joan Cabrero, analyst and strategist of eco trader.
Up to these levels, which are the ones that are marked as optimal to buy the European stock market again, there is still a downward path of 8%. In the case of the Ibex 35, the distances towards similar levels are smaller.
“The selling pressure is still strong and it is most likely that before seeing a new bullish counterattack attempt, the Ibex 35 will end up going to look for the 7,000 integersthe scope of which would fit in with the search for the March lows on the Ibex with dividends at 22,500 points”, says Cabrero, who insists that this support is 2.50% away, “which is the margin of fall that we could still see short before another rebound attempt”.
The best month for the dollar since April
The Fed’s determination to fight against rising inflation has made the US central bank one of the entities that has taken the most aggressive measures in Western markets to curb CPI growth. The consequences of the success of the central entity in this area (at least if it is compared with the rest of the large economies), have been felt more clearly in the evolution of the dollar, which has approached century highs session after session over the last few weeks.
Since the beginning of the year, the Dollar Index, which reflects the evolution of the greenback Against a weighted basket of the most traded currencies, it has risen by more than 20%. A behavior that has been accelerated in recent sessions. In fact, September has been the most bullish month for the US currency since April as the dollar appreciated more than 3%.
According to the market consensus, the path that remains for the Dollar Index is already reduced, but technically “the margin of increase that still remains until the maximum of 2001, around the 121 unitsis around 7.50%”, says Joan Cabrero, technical analyst and adviser to eco trader