It has been fifteen days since the Ibex 35 lost support at 7,000 points this year. Since then, Spain´s major stock index seems has managed to however between the 7,000 and 6,700 points.
Market consensus says 6,700 is the Ibex´s low-end support, and this level matches 2009 lows until another drop off occurs.
On Wednesday the Ibex closed at its lowest levels since 2003, dropping to 6,732.60 points during the day. For the fifth time in fifteen days it tried to break its low-end support of 6,700 points.
Similar to the last time the index dropped this far, the Ibex stagnated and then popped. Yesterday it rose 3.42%, its biggest jump of 2012. Miguel Angel Paz, a director at Unicorp, thinks it makes sense that the Ibex is stuck in this up and down cycle.
"Since April 19 the index has been swinging between 6,800 and 7,200 points. It went down four times and up three. And today, all indicators suggest that we are seeing the fourth upswing."
The rebound stints the Ibex´s slow downward trend this year. It?s lost 18% since January 1, and at this level it wins the shameful honor of being the second worst-performing index in the world so far this year. Falling a devastating 33%, only the Cyprus?s stock market has fared worse.
