 Hello and welcome to CMC Markets on Tuesday the 8th of April and this week's weekly market update and it's certainly been an eventful few days. We've seen a fairly neutral I would say non-farm payrolls report on Friday and after initially pushing higher towards the 1900 area the S&P very very quickly turned tail and went straight back down again and a lot of the declines that we've been seeing over the past few days have been largely as a result of a sell-off in what are categorised as the high momentum high growth stocks and I think that's sort of filtered through into the broader market. Obviously there's also been some concerns about what's going on in the Ukraine at the moment and a raising of tensions there. Last week we also saw the European Central Bank keep rates on hold though Mr Draghi did sort of raise the prospect of QE some way down the line but I still think that even though they are talking about it they still remain an awful long way away from doing anything in any way recognisable as what we would understand as QE and on the scale of the Bank of England and the Federal Reserve have done it and I think that's largely why we've seen the euro go higher and the European markets go lower. No prospect of QE no prospect of stimulus you look at the economic data that's coming out of the US and coming out of Europe it's not bad but it's not particularly great and when you've got the Fed later this week publishing its latest minutes the prospect of further stimulus reduction over the course of the next few months really means that you need stocks to start outperforming to carry on the gains that we've been seeing over the past few months. So you may have gathered from that introduction I'm going to be looking at the S&P 500 and the euro dollar and I'm going to start with the S&P 500. Now those of you who are listening to my non-farm payrolls webcast on Friday will know this particular chart that I'm about to put on the screen now. It's the daily S&P 500 chart and as we can see the we've got to break out higher of that triangular consolidation that we've been in since mid-February and at the beginning of March we broke higher we were unable to break above the 1900 level and I said that if we went back inside the triangle then the prospect the light that it was a quite high prospect that we'd go back and test the lower line on that particular triangle and that's essentially what we've done over the past couple of days. The key level now on the S&P 500 is the 1840 level which basically intersects that trend line and the March lows. If we take out the March lows at 1830 then I think the sell-off that we've seen over the past few days could actually feed in on itself and actually push quite a bit lower towards the 1800 level and maybe even as low as 1750. So that window between 1830 and 1840 is a very important level. Moving swiftly on to Eurodollar, Mr Draghi last week didn't pull the trigger on any QE, he didn't reduce rates, he didn't put the deposit rate negative and as a result we've seen a reversal in the Eurodollar and as can be seen from this daily chart again the support at 13670 where we have the 100-day moving average as well as trend line support from the 12760 lows that we saw in the middle of last year that so far is containing any downside in Eurodollar. Also on Monday we saw a bullish engulfing day and that again is an indicator of positive sentiment and as a significant likelihood we could well retest the highs that we saw earlier in March. I'm going to finish up with a quick look at the Australian dollar and this is a chart I've been looking at for quite some time now and I think it's a chart that I've shown you guys on previous occasions. We've now broken above the 200-day moving average, we've also broken above that neckline that I've identified with respect to the inverse head and shoulders. Now China announced a form of mini stimulus at the end of last week, we've got Chinese data later this week, trade data and I think there is a good chance we could see an improvement there and we've also got Australian unemployment data later this week. If any of those numbers are good and there's a good chance they could well be then the potential for a higher Aussie remains very much on the table as long as we stay above the 200-day moving average and the neckline support from those highs that I've drawn on the chart in front of you. So if we project a breakout from that head and shoulders to from that head to the neckline higher then we certainly have potential now that we've broken above 93 cents to go at least another 200 or 300 points to around about 95 or 96. So certainly worth keeping an eye on the Aussie dollar. So to sum up the key events to keep an eye out for this week are obviously the FOMC minutes which are due to be released on Wednesday evening. I think the key takeaways from there are what new criteria will the Fed be looking at with respect to their decisions on future monetary policy decisions. Also the latest Chinese trade data for March. Will there be an improvement in the exports and the imports data and will the balance turn back to surplus and also the latest Bank of England meeting though we're not really expecting too many surprises from that. Until next week thanks very much for listening. This is Michael Houston talking to you from CMC Markets.