For Cinco de mayo, we thought we’d look at the Mexico Stock Market, using the Mexico IPC Index.

After being a leader for the better part of a decade, the IPC has struggled since topping near the beginning of 2013. Twice in the past year, the index was rejected at the 61.8% Fibonacci retracement level of its 2013 decline. The second of those occurred near the beginning of 2014 and led to a low in March. The bounce off that level was fairly strong but was stopped at the  61.8% Fibonacci retracement of the 2014 decline. Impressively, it has held in a tight bull flag-like consolidation pattern following the bounce and is looking now to potentially break out. The break out would still face the FR level of the 2013 decline around 42,800 but would still have nearly 20% upside to that level.