For over a year, the IBEX has been under distribution, trending downward in a channel of lower highs and lower lows. Trading this summer, however, suggests that the Index may be starting to turn around. The IBEX bottomed out at the end of June when the Brexit vote rocked markets across Europe. At that time, a lower low in the index was not confirmed by the RSI indictor, a positive divergence that indicted downward pressure was starting to weaken. Following an initial trading bounce up through 8,000, the IBEX has stabilized around 8,450 having completed a common 23% retracement of its previous downtrend. The index now appears to be preparing to break out of the downtrend. A move back above 8,750 by the index or by the RSI indicator back above 50 would signal the start of a new recovery trend. Next potential resistance may appear near the 9,000 round number or 9,115 a common 38% retracement of the previous downtrend.