 Hello and welcome to the Charter of the Week video with me David Madden. Today's date is Wednesday the 8th of August 2018 and the time has just gone and let at 1035 British summer time. This week's Charter of the Week is the S&P 500 and taking a look at the big picture we can see that the S&P 500 has recouped pretty much most of the ground that at last in the major sell-off at the beginning of the Year in January and February. The market has been a classic example of an upward trend in recent months. Take a look at the price action since April. We can see the market has been creating a series of higher highs and higher lows over the last number of months and in fact yesterday the market was down to hit its highest level since late January not too far away from the old-time high. Also take a look at the MACD indicator, the MACD histogram. We can see that the as the market was moving higher in the last couple of sessions the momentum indicator swung from negative ever slightly in the red to a positive tariff you know And it's actually increasing as well. So as the market is pushing higher we're seeing a steady increase in positive momentum So the rate of change is heading in direction of the the bulls and the buyers. So with this upper move You can be more confident that this upper move is going to last just because the rate of momentum is in favor of the bulls and the buyers So if you do push on higher from here We could be looking at retesting the January high and therefore the old-time high of 2877 and then of course if you move beyond that turns to be keeping it keeping I offer numbers like 2880 90 and the big cycle actually report number 2900 obviously this would be if you were to see this this would obviously be Something in the kind of more medium to longer term But in the near term, we could see the all-time high of 2877 being retested Now the market's been in an upper trend the last time months So we've seen markets bounce back after reaction low So if you do see the S&P drift lower We could see new buyers enter the fold and look to the market to continue the wider upper trend that it's been in So if you do drift drift lower from from these levels support make them into play in on this area here 2825 or perhaps even down at the 2800 level as a big psychological number, and it's slightly below that we did see the 2791 area Act of support recently and also our resistance not too long ago This didn't hit this line here at 2791 seems to be very significant seeing as in early June it acts as our resistance and then in July and also in July and number of occasions it acts as a support. So while we hold above the 2791 region I suspect the outlook for the S&P could remain positive Even if you drift drift below it support might come into play at this blue line here the 50 moving average at 2780 as you can see the solidation in around that level In in late June and even if you drift lower further support might come into be found at this yellow line here The one of the moving average which comes to play at 2726 once again notice how in June we see no occasions the market with the one or two day moving average did manage to act as a support level Now if you are trading the S&P 500 it's worth keeping an eye on President Trump's Twitter handle given that the trade standoff between the United States and Washington and Beijing is still ongoing so any uncertainty around on trade Could could could hamper the S&P 500 and it's also worth pointing out that we could see increased volatility on Friday When US inflation figures are released. Well, that's all for me this week. Thank you very much