 Good morning and welcome to the chart of the week video with me David Madden Today's date is Thursday the 27th of February 2020 and the time has just gone 1145 GMT and this week's chart of the week is the Nasdaq 100 and as you can see here By the chart the last few sessions have been pretty painful It was only a week ago. We were asked further about an all-time high And then we suffer and then since then we've been driving Driving powerfully lower along with you know the SP 500 stock markets in Europe and Asia as well and The video today is all about are we going to see further losses? So you can see here if an acid is price action has been pretty horrible We've seen a gap to the downside. That's a negative a negative sign We see the market push below the fifth of a moving average Even though the cash trading hasn't begun yet And the future is implied. We are going to be opening lower And we're coming down to it was potentially going to be an interesting level. We can see here That this at this line here because the lows of there. They're about late Late December early January there. They're about it's in around 8663 Keep in mind we're currently expecting the cash market to open when it does open and about 8786 so we're coming into a potential is a potentially an important region and not only that it does this line Kind of tally off, but there they're about the lows of late December early January It also comes quite close to the 100 a moving average at this yellow line along here And we can see quite a few times in the last eight or nine months that particular metric the 100 a moving average Has acted as both support resistance and support on a number of occasions and if a metric has been important in the past It makes it more likely it will be in the future, but obviously there are no guarantees So if we do drive on lower from here, we could find potentially find support from this area here in around 8800 so 8663 if they're there about but we might see the market break below that And should that be the case we could be looking at it now towards this line here and that comes in the play in around 8454 or this entire zone could act as support in around 8854 down to the 8400 mark because we have seen some consolidation in this region in a November and December so These are the areas to keep an eye on forward to the downside if we do have a snapback in the in the Then ask like 100 where can we potentially run into resistance? We could potentially run into resistance in around this zone here in around the 9000 mark It's a big psychological number if and if you go beyond that We can then potentially encounter resistance from this blue line here the fifth a moving average And that comes to play in around 9110 and it's only really if you get back above that and ideally on that on a daily basis close back above that Could then we begin to think you know what this recent downtrend has come to an end And we're looking to continue we on in the wider upward trend, but we're still quite away from that So if we do happen to get back above the fifth a moving average and close above it Then we could think you know what maybe the downtrend has come to an end And then maybe we could be looking at retesting The lows here from last Friday with a gap was created in around 9404 now if you're gonna be trading The the national 100 it's worth keeping keeping an eye on other markets. This here is the S&P 500 And I start theory one of the tenants of doubt theory is that the averages must confirm each other And what that essentially means is that if you put if you feel our markets moving in a certain direction You'd also want to see other markets that are that are similar or highly correlated also moving in a similar direction And we talked about how we a gap was created on the Nasdaq 100 and that a gap has been created on the S&P 500 We talked about how the Nasdaq 100 is driving lower and is below its 50 moving average as is the S&P 500 What's interesting though is that the S&P 500 is firmly below its 100 moving average And it's not too far away from its 200 moving average So the S&P 500 is in worse shape than the Nasdaq 100 but nonetheless both markets are driving lower Therefore you can be more confident that the kind of at the the downward trend in both markets is going to continue But obviously there are no guarantees So so if you are trading the Nasdaq 100 it is worth your while keeping an eye on what's going on on similar markets Finally, if you are gonna be trading the Nasdaq 100 or any of the US stock market indices or any even of the European indices It is worth your while noting that at 13 30 GMT today half one UK time We have some important economic announcements from the US. We have GDP We have initial jobless claims and we also have durable goods that is likely to inject some volatility into already quite a volatile trading session Thank you for listening. Have a good trading week and good luck