The Ibex ends its bullish streak and loses 0.66%

The Ibex 35 ends the session at the lows of the day (-0.66%, 9,686 points) after trading a large part of the session on the map and after having deflated already in the session last Monday. The selective is still unable to close above the key resistance it has at 9,765 points.

Acciona has led the gains in the selective, up 2.13%, together with Enagás (+ 1.66%) and Red Eléctrica (+ 1.5%). Red, on the other hand, has highlighted IAG, which has lost 3.02% after the airline Norwegian has announced that it will raise the prices of the rates to compensate for the increase in the cost of crude oil.

Banking has been the main drag on the Ibex this Tuesday, with some of the banks among the most bearish values: Banco Sabadell (-3.08%), Bankia (-2.35%), BBVA (-2.34%) ), CaixaBank (-1.61%), Santander (-1.69%).

POLITICAL CURRENT

Meanwhile, investors are still very aware of the political future in Spain and Italy. In our country, the new PM is appointing his ministers and this Tuesday Josep Borrell is the clear protagonist, who will be the new Minister of Foreign Affairs. In addition, María Jesús Montero, current Minister of Finance of the Junta de Andalucía, will be Minister of Finance, while Carmen Calvo will hold the position of Sole Vice-President and Equality Minister. Nadia Calviño will be Minister of Economy. Also, in other political news, Mariano Rajoy, announced that he leaves the presidency of the PP.

In addition, in Italy, the leader of the 'North League', Matteo Salvini, Deputy Prime Minister and Interior Minister of Italy, has announced that they will vote 'no' on a new document prepared by the European Union (EU) on immigration arguing that "It will penalize Italy and the Mediterranean countries even more." For his part, Guiseppe Conte, the prime minister of Italy, in his inaugural address, has promised to end "the business of immigration" which he said "has grown excessively under the cloak of false solidarity."

All in all, Europe has also moderated its gains towards the end of the session (Dax 30, + 0.13%, CAC 40, -0.1%) except in the case of the Footsie 100, which also ended with falls, dropping 0.7%.

"Fears of the European political situation continue to relax, and the price of bonds continues to rise, which is celebrated by the banking sector," the AlphaValue experts point out in their daily report. In this regard, it should be noted that the rating agency S & P said on Monday that the change of government in Spain does not, at the moment, have any impact on the sovereign rating. Moody's has pronounced itself in the same sense.

Regarding the macro data of the day, the speed of expansion of economic activity in the Euro Zone has slowed to its minimum of one and a half years in May, with the PMI Index of Total Activity, marking 54.1 points. This Tuesday the president of the European Central Bank (ECB), Mario Draghi will speak.

TECHNICAL ANALYSIS

According to José María Rodríguez, technical analyst of 'Bolsamanía', this is already the second consecutive session in which the Ibex closes clearly away from the highs of the day. In his opinion, the selective can not overcome the significant resistance that presents in the bearish gap of a week ago, at 9,765 points. On the side of the supports is the bullish gap this Monday at 9,630 points. "It would not be anything strange that after not being able to with the first resistance really now look to test the supports," says analyst.

"It would be good if that gap was not closed to maintain the short-term bullish bias," adds Rodriguez, and specifies: "Closing said bullish gap would leave the doors open to a new scenario of falls with the most important support objective, the annual lows in the 9,327 points ".

In short, the analyst expects that "despite the important rebounds of the last days", it is only about that, "a simple rebound". "But what would be worrisome is that the annual minimums will be drilled, in which case we would look again at 8,950-9,000 points (61.8% adjustment of the whole increase since Brexit).