Q2CY2016 Spain Stock Market Executive Summary. In the last update, we made this comment “the market is consolidating but in danger of starting a major bearish trend”.
Figure 1 shows the eSignal Monthly Ichimoku chart for the Spain Stock Composite $IBC-MAC. In 2015, the Spain stock market tried to start a bullish trend but failed. Now, the market is in danger of starting a major trend. The support at 8479 WAS controlling the bearish trend. It was broken with the BREXIT.
Figure 1: eSignal Ichimoku Monthly chart of Spain Stock market
Figure 2 shows the eSignal Ichimoku Weekly chart for the Spain Stock market. The bearish trend can easily been seen on the weekly time frame. For the last couple of months, we have been consolidating in a bearish mode. The 8479 was the bottom of the consolidation pattern.
Now, we broke it, we are the major support of 7752 and in danger of breaking that. If that happens the bearish trend is going to continue to go down.
Figure 2: eSignal Ichimoku Weekly chart of Spain Stock market
Figure 3 shows the Daily time frame for the Spain stock market. Price as bouncing back and forth with the cloud but the overall price action was still going down. The daily is supporting the weekly and monthly time frame.
Figure 3a: eSignal Ichimoku Daily chart of Spain Stock market
Below is Ichimokutrade Heatmap table for all the major stocks in the Spain Stock market (Table 1). Stocks overall are still looking good. You still see some green in the daily time frame. However, they are #2 which is weak Bullish. Ideally, you want to green 3 or above.
A break in the support for the overall market will change all of these daily green to 0 or red and then all the overall stocks will be bearish.
Table 1: Ichimokutrade heatmap table for Spain Stock market
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