The Ibex registers its worst session since October and closes in levels from 11 months back

Heavy falls in the markets of the Old Continent today. The Ibex has registered its worst session since August 2016 and has closed in levels from 11 months back. The index has fallen a 2.53% down to 9,810 points. On October 4 of 2017 the index fell a 2.85%. The European stocks have been affected by Wall Street’s black Monday (the Dow Jones dropped over 4.6%).

IBEX 35

11.467,300
0,24%

Many investors are asking if the stocks are drawing a change of the trend and we are seeing the end of the rising market that has been with us for so many months. The experts at Link Securities said on Monday that it isn’t the case and the recommend to take advantage of the falls to buy. Although waiting first for the market to reach rock bottom and stabilise.

Back to the Ibex only Siemens Gamesa has managed to close in green. The company has increased in value a 0.68% up to 11.76 euros. The rest of figures in the index have closed with falls and in some cases very pronounced.

This has been the case of Cellnex, that has fallen a 4.21% down to 20.24 euros. It hasn’t been a good session for ACS that has dropped a 4.01%. Important falls in the blue chips too. Iberdrola has dropped 3.96% down to 6.05 euros near its support zone.

In the case of Banco Santander the fall has been less pronounced but also significant. The northern entity has dropped 2.92% and BBVA a 2.34%. On the other hand Inditex has fallen a 2.7% and is listing in 26.63 euros and Telefónica has dropped a 2.56% down to 7.69 euros.

VOLATILITY

VIX the volatility index known as the panic index, is still registering an extreme behaviour after registering the biggest daily increase in history (115%), up to 37 point. This Tuesday, it shot to 50.30 points before the opening of Wall Street, it has then fallen to 22.42 points and now is going up again a 17% up to 43 points.

The VIX has managed to get to 2011 highs, in line with the Dow Jones, that suffered its biggest fall on Monday since August 2011. This indicator is moving the indexes inversely. When the variable rent goes down dramatically the VIX goes up and viceversa. Last week it shot 62% while the New York Stock registered its worst weekly performance in two years.

OTHER MARKETS

The rest of the European stocks have also suffered Wall Street’s Black Monday. In fact they have all closed with falls close to 2%. The CAC 40 has dropped a 2.4% and the German DAX 30 a 1.6%, the FTSE 100 has dropped a 1.5%. Wall Street lists moderate falls after the devastating Monday.

On the other hand, petrol falls 1% burdened by the plummet of the global markets. The Brent, a reference in Europe falls close to 1% and places itself in 67 dollars. The West Texas, reference in the US, drops a 0.7% down to 63.76 dollars.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst of Bolsamanía, points out that like last week we await the close of the week to see if we are capable of jumping over 10,600 and now we have to do the same with the support figure. “It could be that at the close on Friday we are over the 9,900 and everything would be the same: lateral movement since summer 2017”, points out the analyst.

Having said this, in the short term we have the resistance in the falling space of the 10.064 points and over us the rising space in the 10,205 points. Under, in the support zone we have the 9,200-9,250 points. “We have to be on the lookout of BBVA as a advanced value for the Ibex 35.