This November we have seen a surprisingly long bearish movement in the IBEX 35, breaking records of years by falling for ten consecutive sessions.
The reasons are many, but I think the negative impact of the catalonian independence declaration over the economy is among the most important.
Because while the european indexes had similar tendencies, some days they still rose while most they were bearish, while the spanish index fell each day, with I think no negative news that clearly justified this movement.
And that is because Catalonia continues to lose companies, self-employed professionals, tourists and real estate sales seem to have slowed down. Even foreign investors think twice before looking at investing in Spain, not just Catalonia.
That being said, it seems the IBEX 35 is unwilling to continue this bearish push, and thus on the 15th, after falling below 10.000, the index bounced off the 9.900 support in a return in a day figure. Many seem to consider this price as a good buying opportunity, so I'm not too surprised.
It's possible that after this intense movement we see a few days of calm while it chooses its next tendency.
Statistically, the christmas rally means the stockmarkets go up around this time, as, among other reasons, people invests their extra pay in their pension plans and funds and part of that money ends in the stockmarkets, but there are news that I think could drag down this bullish tendency; there are elections in December in Catalonia, and there are doubts on the growth of Spain due to this crisis.
Anyway, I think the IBEX 35 will have a hard time crossing below the 9.900 support and lower levels, but if it does, it could be the start of a very strong bearish tendency.
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Brothers, best of luck in your investments!