Chile Stock Market Crashes 2.29% as 200-Day Line Breaks on Hot US PPI
The S&P IPSA fell 2.29% to 10,396.50 on Wednesday May 13, 2026 — the worst session since late February. The index closed at the session low after hot US April PPI extended Tuesday’s curve-steepening trade. Critically, the IPSA broke decisively below the 200-day SMA at 10,718 — Tuesday’s decisive level. The trendline at 10,029 is now the final structural support, 3.5% below.
The Big Three
The S&P IPSA fell 2.29% (−244.16 points) to 10,396.50 — the worst session since late February. Intraday range 10,392.31 to 10,645.96, close at session low. The index broke decisively below the 200-day SMA at 10,718 that defined the post-Kast election uptrend. The IPSA is now 11.3% below the January ATH at 11,721.
The driver was the hot US April PPI per Diario Financiero, extending Tuesday’s CPI-driven curve steepening. SQM-B led the decline at −4.5% intraday on global lithium selling. Falabella, Cencosud, and Latam — Middle East-conflict-sensitive names — followed lower. The IPSA closed at five-week lows for the second consecutive session.
The technical structure has decisively broken. MACD histogram −1.62 with line −70.98 vs signal −69.36 — bearish crossover confirmed. RSI fast 35.62, slow 47.06, both below 50. The ascending trendline at 10,029.53 — 3.5% below — is the next significant support. A break opens 9,500.
02Session Data
| Index / Pair | Close | Change | High | Low |
|---|---|---|---|---|
| S&P IPSA | 10,396.50 | −2.29% | 10,645.96 | 10,392.31 |
| USD/CLP | ~900 | +0.4% | — | — |
| Ibovespa (BR) | 177,098 | −1.80% | — | — |
| COLCAP (CO) | 2,073.46 | −0.73% | — | — |
| IPC (Mexico) | 70,187 | +0.22% | — | — |
| Merval (AR) | 2,738,354 | −1.96% | — | — |
| Copper (front) | ~$4.55/lb | flat | — | — |
03Key Movers
Winners
Defensive utilities absorbed the limited buying. Enel Chile (ENELCHILE) and Engie Chile (ECL) held marginally green on rate-sensitive defensive demand. Aguas Andinas (AGUAS-A) defended its level; Copec (COPEC) caught a relative bid on Brent above US$109. Breadth was extremely narrow.
Losers
SQM-B led at ~−4.5% intraday per Diario Financiero — the heaviest IPSA weight on global lithium selling. Falabella (−1.3%), Cencosud (−1.2%), and Latam Airlines (−0.9%) — Middle East-sensitive names — followed. Mallplaza and Parque Arauco gave back further ground. The bank complex (Banco de Chile, Santander Chile) sold on curve steepening.
§04 · Market Commentary
Wednesday delivered the deeper-correction outcome Tuesday’s analysis flagged as the bear case. The IPSA broke decisively below the 200-day SMA at 10,718 — the level that defined the post-Kast election uptrend since December 2025. The trigger was hot US April PPI, which followed Tuesday’s hot CPI and pushed Fed-cut odds further out. SQM-B, the heaviest IPSA weight, sold ~4.5% intraday on global lithium flows.
The structural thesis is still intact on paper. Copper above US$4.50/lb supports the supercycle narrative. NovaAndino Litio remains the structural lithium story. Kast’s proposed 27→23% corporate tax cut is the largest domestic re-rating catalyst. But the post-election premium has fully unwound and Chile now trades on global flows. RSI 35.62 is approaching but not at extreme oversold; a clean trendline break opens a 14.4% drawdown from the January ATH.
05Technical Analysis
The IPSA closed at 10,396 — below the 20-DMA (10,735), 50-DMA (10,732), 200-DMA (10,718), and the entire Ichimoku cloud. The candle is a long red bar with the close at the session low — a textbook breakdown. MACD histogram −1.62, line −70.98 vs signal −69.36; bearish crossover deepened. RSI fast 35.62, slow 47.06. The trendline at 10,029 is the final macro support, 3.5% below.
06Forward Look
07Questions & Answers
Verdict
The IPSA enters Thursday at 10,396, having decisively broken the 200-day SMA at 10,718. The trendline at 10,029 — 3.5% below — is the line that decides between deep correction and structural retracement. The structural case remains intact but no longer drives the price. Chile now trades on global flows — US data, Trump-Xi headlines, and BCCh dovishness.
Related: Tuesday’s IPSA at 10,640 · Brazil Ibovespa crash · Argentina Merval capitulation.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Emerging-market equity markets carry commodity, currency, and political risk. Always consult a licensed financial advisor. Published by The Rio Times.
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