While most of the european markets are recovering or have been performing much better since the beginning of 2012, some had extremely poor performance. In this post I’m analyzing Spain’s IBEX 35 index and comparing it with other European country indices to see the ones that are recovering, performing better and worse. This should give us an intermediate-term overview of European equities performance. I believe if we need to rank the countries from poor performance to better performance (Spain, Portugal, Italy & Greece) should be in the poor performance category, (Switzerland, Sweden, Netherlands, Ireland, France, Finland, Belgium and Austria) should be in the recovering category and (Norway, Denmark, UK and Germany) should be in the better performance category.
If we analyze Spain’s IBEX 35 index, it has been pressured by the long-term moving average (200 day) and is now testing the lower side of its 8 months-long consolidation range. RSI failed to move above 50 levels in the past three attempts and price also failed to breach the long-term average. Now the question is will the index also break down the intermediate-term consolidation range? This will be answered by the market in the next few weeks. Unless we see a sharp reversal from the support at 7,800 level IBEX 35 can fall back to 2009 low levels at 6,700. Index should clear 8,800-9,200 area to be ranked in the recovering category.
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