• Benchmark sits at mark it's bounced off of repeatedly
  • If it breaks below that line, it may test year-to-date low

Brazil’s benchmark Ibovespa stock index has fallen to a level that has provided support since the depths of the 2013 rout.

The gauge, down 0.4 percent to 44,715 at 3:18 p.m. in Sao Paulo after Fitch Ratings cut the country’s bond rating to junk status, has been in a classic downward trend since 2010, with increasingly lower highs and lower lows. Since hitting a four-year low of 44,107 in July 2013, it has bounced back from just above or below that mark five times.

Failing that level, the index may also find support at 43,426, the statistically significant second standard deviation line of its five-year average.

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