 Hello and welcome to CMC Markets on Tuesday the 22nd of April and the weekly market update. And this week I'm going to revisit a couple of the charts that I looked at a week ago, namely the US S&P 500 and the cable chart, the pound against the dollar, because we've seen two divergent outcomes from the two patterns that I highlighted last week. One's worked out pretty much as I expected it would. The other one, not so much. We're really going to have a look at hopefully what to expect next and what are the next key levels for both charts in question. Also going to be looking ahead to Apple's latest earnings announcement later this week. Have a look at the Apple chart and overall really look at the general performance of the equity markets over the past few days. The very positive and significant bounce back in the S&P 500 despite the fact that earnings really out of the US have been, I would suggest, a little bit mixed. We've seen economic data over the past week or so, which again has been somewhat mixed. We had Chinese GDP, which came in slightly better than expected, but still below that 7.5% threshold that is the Chinese government's benchmark target. Also seen UK, EU and US inflation continue to edge lower, with no real prospect that central banks are going to step into the breach further, ease monetary policy further in the near future. Let's first and foremost look at the S&P 500 and as was suggested last week, we did see a significant short squeeze. In fact, we came back an awful lot further than I thought that we would. We broke them back through the 1850 level on the back of that piercing pattern on the daily candle charts and there is a good chance that possibly we could revisit the highs that we saw in March around about the 1887 level. But if we look at the client sentiment data for this particular chart, clients I think are probably more biased to the short side than they are to the long side. And you can see that on the client sentiment indicator that I'm displaying in front of you right now. So I think at the moment, while we're below 1888 in the 1900 area, I still think that we really need to see earnings come in way ahead of expectations as well as earnings forecasts to start being revised upwards before we can see further significant gains in the S&P 500. So I think the bias remains certainly to sell into strength for that particular product at the moment. So while the S&P 500 sort of worked out as we thought that it would do, unfortunately the pound against the dollar the cable chart didn't. Now last week I talked about an evening star pattern and that did seem to suggest that we could well see a little bit of a drift lower. Unfortunately, that's not what has happened. What we've seen is the pound continue to remain fairly well supported. We've broken above that 168.20 area. Been as high as around about 168.45, 168.50. But the key level and it's highlighted here on the chart is around about 168.80. And that's the November 2009 highs. Really I think for a test of 170, we really need to see a push beyond 168.75, 168.80. The key support coming in at the downside is once again that trend line support from the lows which now comes in around about the 166 level. And it's worth keeping an eye on some key economic data out of the UK later this week, namely the latest public finance numbers, which are due out on Wednesday, the latest Bank of England minutes. But more importantly on Friday, it's UK retail sales. We saw a very good number in February. The likelihood is we could see a negative number for the March number to offset that really big jump that we saw in February. So that could ultimately drive the next move higher or lower in the pound against the dollar. So let's finish up with Apple. Now, there's been an awful lot of what I would call speculation about how productive the latest tie up that Apple has got with China Mobile and the access to the Chinese mobile phone market. Now, this latest Q1 update should give us some early indications as to whether or not that particular tie up is starting to bear fruit. For the time being, Apple has been rather immune from the tech sell-off that we've seen in recent weeks. And that's largely because the stock trades at a fairly low PE in any case. So I think the key level is highlighted on the chart in front of you. It's the 200 day moving average and it's also the trend line support which comes in from the lows this year currently comes in round about $515, $520. As long as we stay above that very key support level, then the prospects for Apple's or the prospect for further Apple upside, very easy for me to say, remains fairly good. And certainly the client sentiment tends to bear that out. Once again, over 90% long Apple shares. As long as we stay above the 200 day moving average, I don't think that will really change that much. OK, so that's pretty much it for this shortened trading week. Thanks very much for listening. This is Michael Houston talking to you from CMC Markets.