Chart of the day - SPA35 (22.03.2021)

Spanish IBEX35 (SPA35) trades almost 1.5% lower today and significantly underperforms other European benchmarks. Index is being dragged down by shares of BBVA (BBVA.ES), Spanish bank with significant exposure to Turkey. Bank’s shares trade 6% lower today after CBRT Governor was fired and given over 6% weight in the index, it makes IBEX the worst performing blue chips index in Europe today.

Index continues correction started last week and is already trading over 4% below recent highs. SPA35 dropped below the 200-hour moving average and upward trendline today and is attempting to break below the 8,350-8,380 pts support zone. This zone is marked with previous price reactions as well as the lower limit of local market geometry. Breaking below it would pave the way towards the next support at 8,250 pts.