 Hello and welcome to the chart of the week video with me David Madden today's date is Wednesday the 28th November 2018 and the time is just gone 945 GMT this week's chart of week is the S&P 500 and starting off You take if you take a look at the chart here on a longer-term view If we draw a trend line between the lows of February 2016 and the lows of November 2016 you get this trend line here and As you can see this trend line was well respected back in late October The market bounced off of this trend line. It pushed higher But then again the market turned over on itself again as you can see and once again for the fourth time This trend line has been respected. So as you can see here While the market holds above that this trend line, it's likely we could see the bullish the bullish move And the upper move continue from these levels So if you do continue to push on higher from here We could be looking at retesting this red line here, which is the 200 day moving average and that comes to play 2762 and if you go beyond that we could be looking at targeting 2,800 it's a big psychological number and if we go beyond that we could be looking at retesting the Early November high which comes to play at 2817 that pretty much coincides with this yellow line here at the 100 day moving average Should we see any move to the downside and the market does manage to drop back below? The this trend line here the channel support here. Oh, we could be looking at any back down towards 2600 and then should we see a societal break below? 2600 that would be then creating a new multi-month low And we could you could look at a back down towards this area here a level not seen since early April 2553 and if you go below that we could be looking at a back down towards the lows of 2018 back of February which come into play at 2532 and of course a break below that would obviously would be fair a fairly Bearish indicator if you are going to be trading the S&P 500 it is worth noting It is we're keeping an eye on what's going on with the Dow Jones because as you can see here on the S&P 500 It is above this channel and support here And that's also the lows of late November have also been higher than the lows of late October So if you take a look what's going on on the on the Dow Jones We can see something similar is playing out I take a look at the Dow Jones if you draw a line a trend line between the lows of February 26th The lows of February March April and May we get this trend line here I'll grant it the market did manage to trade below it in in October, but the money market held Close above it had a fairly decent Bounce off of that trend line granted we have spent a few sessions trading below the trend line But we're back above it again and as you can see we can see a reasonably similar Pattern on the chart here whereby the market is back above this trend line support and also the lows of late November I've also actually above the lows that were created in late October. So According to Dow theory at the averages must confirm each other So if you are trading the S&P 500 it is worth keeping an eye on the what's going on with the Dow Jones because While the S&P 500 is above it's a nice support and the lows of November are above the lows of October She if you see that replicated on the Dow If the Dow is above at the lows if the lows of November are above the lows of October And if the Dow is above its trend line, it's a trend line support That bodes well for the S&P 500 if one is above the trend line support on the odds below that makes it a bit less That that creates a bit of an indecision and above the fall below the respective trend line support But you could then become more confident that that the market is then heading south from there If you're going to be trading the S&P 500 or indeed the Dow Jones it is worth keeping an eye out for economic updates and central bankrupt dates from the United States later on today We have a GDP reading from the United States And we also have an update from Jerome Powell the head of the Federal Reserve If you've any comments to make on this video or any of the other videos we've made here at CMC markets Please feel free to leave review on Google reviews, and that's all for me today. Thank you very much