A new weekly market analysis of the eToro investment platform carried out by senior analyst Javier Molina, warns of the state of extreme euphoria on the Stock Market.
According to Molina, investor sentiment has gone from readings of extreme fear in October 2022 to levels close to extreme euphoria today.
The report notes that business results, with 84% of SP500 companies having already submitted them, show negative growth of 29% year-on-year. Nevertheless, Equity inflows have turned positive in recent weeks.
The analyst points out that the US Treasury Bill has not paid its investors rates of 5% since 2007, although this data can be diluted compared to the CPI, which is close to 6% today, in contrast to the 2% that averaged at that time. .
The eToro analyst highlights that most global indices have stopped right at key resistance levelspending the PCE (Personal Consumption Expenditure) inflation data that may have an effect on the Fed’s monetary policy.
Regarding world indices, Molina points out that the SP500 from a technical point of view, “we enter a complex area in order to take one path or another”.
The 4,200 level will be key to defining an uptrend, depending on whether this level breaks upwards, or failing that, a downtrend if it falls below the 4,040 support zone.
On the other hand, the IBEX-35 has recently reached a new annual maximum, thanks to the strengthening of values such as Telefónica.
Last and not least, The analyst points out that from a technical point of view, the price of Bitcoin experienced a false breakout of the USD 22,000 zone with an upward breakout at the 25k target that, for the moment, has stopped right there.
For Molina, if the Bitcoin price does not break the 25k level, it could correct back to the $22,000 area. If this area is lost, it could fall back to USD 20,000.
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