 Hello and welcome to the week ahead video with me David Madden. Today's date is Thursday, the 3rd of September 2020 and the time has just gone 2042. And I'm looking ahead to next week, which is Monday the 7th until Friday the 11th of September. And we're currently seeing a huge sell-off on US equity markets. The tech sector has come under enormous pressure. Big tech stocks like Apple and Amazon and Facebook and so on have racked up huge gains in the last few months. People have been talking about there are a lot of evaluations for quite some time. And we're now seeing quite a large sell-off. And because there's been a sell-off on tech, that's weighed heavily on the likes on the S&P 500. And we've also just kind of sparked a wider sell-off across the board. Keep in mind, US equity markets in particular have been very, very strong recently. So there's some people out there who are thinking this is the beginning of the end. There have been others out there looking at a goon. This is a long overdue correction. But I guess we'll find out what the true story is. This video has been recorded on Thursday, obviously in advance of the US non-farm payer reports. So we don't know what those numbers are going to look like. But what we saw in today's session in Thursday before we had the huge tech sell-off was we had a bit of, we had actually a fairly fair bit of confidence for most of the European trading session. Over in the US, the Centre for Disease Control stated that the US health officials most have in place procedures to distribute a COVID-19 vaccine as early as November. That's not to say that there's going to be anything in place. A drug will have been developed by then. But if that body are putting it in place, one of those measures in place by as early as November, it would suggest that they believe that there is some possibility we could have a vaccine in the next few months. That propped up European equity markets for much of the session. It is worth noting that Dr. Anthony Fauci, a specialist in diseases, threw a bit of cold water on that belief. He said it's not impossible that a COVID-19 drug will be developed by the end of October, but it's unlikely. We also had more details of the 100 billion euros stimulus package from the French government to assist the economy. But nonetheless, we have seen a fairly sharp sell-off in equities. The dollar has been firmer for the third day in a row, and we have seen pressure applied to commodities. Taking a quick sneak preview at some of the big events next week. We have the UK GDP month-on-month readings. We have an update from the interest rate decisions from the European Central Bank and the Bank of Canada. No change is likely for both of those various central banks. We also have US CPI, and keep in mind, it wasn't that long ago the Federal Reserve altered their policy in relation to their inflation policy. They're happy to have an average target of 2%, so they're content for inflation to run north of 2%. What I'll do now is take a quick look at some of the major indices and see how things are shaping up. Like I said, I'm recording this video on Thursday, so the price action and the prices could be a bit old by the time this video goes out. But if we take a look at the price action and the footsie for the last few months, after achieving a multi-month high in June, we're moving steadily lower the last few months, a series of lower lows and lower highs. So things are looking quite negative on the footsie with 100. If you press on lower from here, and if you have a size of break below 5,800, we could take us back down towards this zone here, the lows of mid-May in around 5,660. Any snapback on the footsie could incur resistance from this area here in around 6,000, big psychological number and all that. The German market is in better shape than the footsie 100. As we can see here, in today's session, as I mentioned, there was some positivity initially in Europe. It hit a multi-month high, its highest level since February. But if we take a look at this daily candle, shaping up to be or could be as a potential to be a bearish engulfing from this red rectangle here, the entire body of this candle appears to be engulfing the previous day's candle, which could be, if that is the case, we could see a move to the downside. We need to have that confirmed by further losses from here. But if you do see a move to the downside, we could head back toward this blue line, the fifth-day moving average, which comes into play at 12,800. And notice how, on a few occasions, that metric nicely acted as support. And if a metric has been important in the past, it makes it more likely it'll be of importance in the future, although there are no guarantees. And obviously, if you do manage to shake off the recent bearish sentiment, we could be looking at retesting the recent highs heading back north of 13,000 and retesting the recent highs. Taking a look at what's going on over on the S&P 500 of the US markets. So we had a series here of inter-day and record highs being posted. It's always the way people don't think too much of it when the market's going up. We have a colossal red candle like this. Some people go running. But keep in mind, we're currently on the S&P 500 at 3,437. Just bear in mind, we got up towards 3,588 or so in the last couple of days, not too far away from 3,600 back in late June. Apologies. It wasn't that long ago on the S&P 500 in late July. We were at 3,200. So we came a considerable rally between basically in the month of August, we went from around 3,200, there thereabouts, to up towards 3,600. So it's a phenomenal rally. So don't be surprised if from time to time you have an excessive move in the downside like this. If we do press on lower front here, we could head back towards 3,400. There's a few occasions that area act as kind of as a bit of an area of both resistance and support. And if you go below that, the lows of mid-August in around 3,350 could potentially act as support. I mentioned at the top of the video, how we've seen some strength in the US dollar in the last couple of sessions. It is worth noting the rebound in the dollar came after it fell to a 28-month load during the week. So the highest here we're seeing on Eurodollar on Tuesday was a 28-month high Eurodollar. Conversely, it was a 28-month low on the dollar index. So of course, we've had a great one on the Euro, it's traded north of one-spot 20, but I already know it turns lower. We're still holding above the 118 mark, but the wider upward trend is still intact. So if the wider trend does continue, we could be heading back towards one-spot 20. And if we go beyond that, we could be heading up towards one-spot 2140. If you do drop back below one-spot 18, this zone in here in around one-spot 6996 could act as support. And if you go below that, the fifth-day moving average is blue line here, and that comes into play in around one-spot 1632. As I mentioned, we have an update from the ECB next week, although there are no tweaks, there are no changes to be expected. Pound dollar has also had a great run recently, once again because of the dollar weakness. On Tuesday, it hit its highest level since December 2019, so a multi-month high has been racked up. But the rebound in the dollar has put pressure on sterling the last couple of sessions. It appeared to be an edging lower. If we do continue this pullback, we could head towards one-spot 32. And if you have a larger, if the pullback continues, we could head all the way back potentially to one-spot 30, you know, it being one of the big numbers and so on. But notice we've had a wider upper trend, this is very much intact. And if you press on higher from here, we could look at retesting the recent highs. And a move beyond that could take us up to one-spot 3515, a level last seen on the night of the UK general election in mid of December last year. We also have seen a decent move in dollar CAD today, the US dollar versus Canadian dollar. And next week, we get an update from the Bank of Canada. So we've seen considerable weakness in dollar CAD at the last number of months. But we have actually seen a fairly decent rebound in the last 48 hours. Once again, this ties into the broader theme of a rebound in the US dollar. But the question is, will it last? Because in the past four or five weeks, there's been a number of occasions where the US dollar has had a bit of a rebound for a couple of sessions, maybe three sessions, and then turned over on itself again. So this move to the upside in dollar CAD could be just an example of the market heading up towards, say somewhere like one 32, one spot 3240, and then turning lower on itself again, or could genuinely be the beginning of a correction from here. In the last couple of months, the US dollar has acted as a bit of a safe haven play. So this aggressive sell-off that we've seen in stocks today could be the beginning of a larger correction. And if that is the case, we could see dollar strength. And if that is the case, we could see the dollar press on higher from here. If you take out the kind of one spot 3240 area, we could even look the head up back up towards this blue line here, the 50 moving average in one spot 3370. But of course, if the dollar CAD turns over itself yet again, if you take out one spot 30, that could take us back down towards one spot 2951 or one spot 2926. All their big events out next week. We have CPI and PPI from China, as I mentioned, UK GDP, European, which is a monthly report, by the way. European Central Bank, Interest Rate Decision, Bank of Canada, Interest Rate Decision, US CPI. We also have, as we do every week, the US jobless claims. We'll have full year figures out from Don Elm. We have first half figures out from Morrison's. We have first half figures out from JD Sports. We also have second quarter numbers out from Slack Technologies, the messaging company. And finally, we also have fourth quarter numbers from Peloton. Thank you for listening. That's all for this week. Have a good trading week and good luck.