Corey Rosenbloom: If you think the US S&P 500 has been non-stop bullish, have you seen Spain?
Spain’s Bolsa de Madrid IBEX 35 Index along with the related iShares ETF (NYSEARCA:EWP) have been incredibly strong since the July 2013 low, overtaking the S&P 500 on a Relative Strength basis.
Let’s take a look at Spain’s strength and what’s happening now:
Through 2013, Spain’s IBEX traded within a declining parallel trendline channel pattern which experienced a clean price breakout into August.
After a small “abc” retracement back to test the falling upper trendline into the 8,400 level, buyers have been relentless and sellers have been exiting (buying-back to cover losses) which helped propel the index in an almost non-stop positive feedback loop or pro-trend impulse to the upside.
The recent breakout gap above 9,500 has been extremely strong, similar to the persistent upside action off the 8,400 level in September.