At this point in August and after all that happened since March, no one doubts that the trend of our indicator, and all other countries is clearly bullish. I commented a graph of the Ibex 35 where we see the complete fall since December 2007. Since March minimum, corrected 23.60% in the fall and 38.20% of the fall virtually unperturbed. Now the resistance approaching 50% of the fall, which is around 11 372, was a former resistance around the 11 167 points, hence the break just to play this resistance and cutting the last few weeks ago. Trim and rises again to overcome the resistance force and staying at the gates of 11 372 points 50% resistance. (The truth is that the has exceeded maximum intraday).
As you can see with almost surgical precision, as if someone was moving the market and being guided by these references. So, what to expect from this market? . Further increases in the short term. Today Resistance broken and it has done with up gap that has not been completed. As you know the holes upwards are important in technical analysis. Therefore, the resistance of 11 372 can easily be whipped tomorrow and move to the next strong resistance from our index that is in the vicinity of 12,000 points (particularly in the 12 055 points I have set myself).
The truth is that this has been a rise in V, very vertical and it would take a significant cut to adjust the rise. But markets do not always do what we want o. .. when we want. We’ll see what happens and if you continue the climb. We entered the month of September in no time. A month with October traditionally difficult for stocks. Yet all the analysts also said they expected cuts in summer and has been bullish hundred percent.