Brazil's Ibovespa Stock Rout Testing Long-Term Support Level
- Benchmark sits at mark it's bounced off of repeatedly
- If it breaks below that line, it may test year-to-date low
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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.