ITALY MIBTEL & SPAIN IBEX 35

European equities recover from the bear market by first clearing their 200-day moving averages and then by breaking to new high levels. Two indices that have shown considerable strength over the past few months are Italy’s MIBTEL and Spain’s IBEX 35. Italy FTSE MIBTEL started gaining momentum after the breakout above 17,700 levels. Uptrend is intact and the index just completed a minor consolidation in the larger scale uptrend. We can expect the index to resume its uptrend in the following weeks.

Spain’s IBEX 35 index gained strength after breaking out of its year-long sideways consolidation at 8,800 levels. Similar to Italy’s MIBTEL index, Spain’s IBEX 35 just completed a minor sideways consolidation which is expected to be part of a larger scale uptrend. Both indices have positive technical outlook and should target higher levels in the following months.