It is Friday, April 19, and the AEX is trading at 858 in the morning after the index set a low this morning at 853. The current position is down 34 points from last week, which means the AEX is down just under 4% for the week.
Above, you'll find the chart of the AEX over the past 12 months. You can see the upward trend since November 2023 and the second correction that started last week.
Fear is prevailing. The ever-present tension in the Middle East is increasing, there also have been no significant macroeconomic figures last week that could bring optimism. International investors are pulling back and liquidating part of their portfolios, resulting in corrections in the stock markets.
The major trend in the stock markets is still upward, and corrections are part of the process. Last week, the decline due to panic selling has been quite steep. The algorithm closed long positions in the AEX and Nasdaq on Wednesday, indicating that we should wait out the correction. The expectation is that the AEX will stabilize between 850 and 845 in the coming week. Most likely, from this zone, is the AEX going to resume its upward trend towards this year's target of 920.
Important note: If the AEX fails to hold above 845, the most likely scenario is that it will decline further towards 800. Therefore, the 850-845 zone is crucial for the AEX's trajectory in the coming months.