Volatility in the Ibex: it closes with a fall of 0.34% after rebouncing 3%

The extreme volatility, fear and all the problems that plague the markets have made it very difficult for the indices to rise consistently. It should not be forgotten that in the past day the Ibex advanced 4% to close with 3% cuts. "We are at the second highest level of volatility after the 2008 crisis," said José María Rodríguez, analyst at Bolsamanía.

The coronavirus continues to be of great concern to investors. The disease has already infected about 114,000 people worldwide and more than 4,000 have died so far, according to the latest figures from the World Health Organization (WHO).

Investors today welcome news about all the measures being taken to deal with the disease. The Bank of England has announced a cut in rates of 50 basis points, up to 0.25%. In addition, on Tuesday the European Union (EU) released a stimulus package to deal with the virus, just as specific countries, such as Spain, are doing the same thing.

Likewise, investors are also on the lookout for news coming from across the Atlantic. A White House official has said that Donald Trump has proposed lowering the payroll tax to zero as a measure to tackle the coronavirus. In addition, Democratic candidate Joe Biden prevailed over Bernie Sanders in Michigan. The markets like this given that Biden, a more moderate candidate, is the favorite option against Sanders' more leftist policies.

Meanwhile, also in the United Kingdom, the new government finance minister will present the annual budget on Wednesday. Rishi Sunak, who has only been in office for four weeks, delivered the budget around 13:30 Spanish time. Economic uncertainty limited the scope of the budget regarding the Conservative Party's electoral commitments, and also contained measures to mitigate the economic impact of the coronavirus.

As for the macro data of the day, pay special attention to the CPI of the United States. Remember that we are on the eve of the meeting of the European Central Bank (ECB), which takes place tomorrow Thursday. The market awaits the body's measures to deal with the coronavirus. It will be necessary to see to what extent they convince and it will also be necessary to see how they impact the different market sectors.

TECHNICAL ANALYSIS

"Another session similar to the previous ones in which we have risen above 3% during the first hours of the session and then close away from the highs of the day. Dilatations aside from prices, as we must bear in mind that the volatility is at a high and therefore the price dilations are the order of the day, it would seem that the Ibex is trying (although without success) to grab the support area that it presents in the 7,500-7,600 points: the lows of 2016 ", explains José María Rodríguez, technical analyst at Bolsamania.

"It remains to be seen what the closing of the weekly candle tells us, since it will probably tell us whether this level will act as a brake or if, on the contrary, it is pierced," he explains.

"In the latest of the scenarios what the price would be telling us, rebounds aside, is that a return to the 2012 lows of 6,000 points cannot be ruled out. Above, on the resistance side, the first one We find it at 8,000 points and above the daily bearish gap of 8,400 points, "concludes the expert.