 Good morning and welcome to the chart of the week video with me David badm Today's date is Thursday the 3rd of October 2019 and the time has just gone 11 20 for the summer time And this week's chart of the week is the Australia 200 And if you take a look at the price action trial 2019, we can see at the mark at the market made a major recovery For the first say half of the year Had a major move to the upside here in July and it July In early August like many global stock markets endured a fairly large sell-off, but since then between mid to late August and it running up until This latest September would see a fairly size recovery only for the market to turn lower yet again And if you take a look at yesterday's candle, it's extremely it shows the the magnitude of major sell-off But we saw yesterday and this wasn't Just unique to the Australia 200. We saw a major sell-off In the FTSE 100 which closed below was turning moving average We saw the DAX closed below the 12,000 mark and over the US we saw the S&P 500 closed below the 2,900 mark so the as doubt theory tells us the averages must confirm each other and Seeing as Australia 200 Endured a major sell-off and other major stock market indices endured major sell-offs We'd be more confident that the overall bearish sentiment is here to stay in the near term Now if you do manage to You've had a pretty subdued session today But that's not forget that the market has endured a major sell-off We saw a steady swing from positive momentum into negative momentum Negative momentum which is rising here on the MACD indicator If you do manage to take out the recent the lows of today of today And if you do manage to press on lower we could be looking at our everything This is the area here down around the six thousand four hundred region down to six thousand four hundred down to six six thousand three hundred and fifty six This is old here and if you take out the lows of August We could be lucky heading back towards this red line here the charity moving average and that comes into play at sixty three forty two Now financial markets don't move in straight lines So what we could see is we could see a bit of a bounce back Potentially before the next possible move lower now if you take a look what happened in August We saw a severe sell-off in a in early August and then it means the after that sell-off We didn't see a bounce back for this area here in around six thousand four hundred before the market move lower yet again So we might see something similar here where by the market might rebound and pull back some yesterday's losses Potentially head back up toward this zone here Six thousand six hundred we could see that acted as both resistance and support in the that just in past Also that meeting isn't too far away from this blue line here they fit the movie average which comes into play at sixty six fourteen and This this line here the one of the movie average that comes into play just south of six thousand six hundred No both of those metric metrics in the last in the last few months have acted as the support in the past So it's possible it's possible that previous support could become new resistance So you might see a bounce back toward this zone here for potentially having another leg to the downside If on the other hand the market does matter to make a recovery and we push firmly Above the fifth and moving average again We could be looking at reach retargeting the highs of September And if you take off the highs of September then we could be looking at retesting the highs of July Now if you aren't going to trade the Australia 200 and is worth keeping an eye out for the We're keeping an eye out for the Australian retail sales, which are due out tomorrow as are the as are the The Australian financial stability report most importantly is the US is the US non-farm perils webinar The non-farm perils event takes place tomorrow at 13 30 for the summertime and here at CMC markets My colleague Michael Houston is hosting a live webinar, which will cover the reaction to the numbers Feel free to sign up for that on our website. It's under seems to markets calm under insights under webinars And events you will see it And if you have any comments to make on this video or any of the other videos we've made here at CMC markets Please feel free to review our reviews. Thank you very much