 Hello and welcome to the week ahead video with me David Madden. Today's date is Friday the 12th of July 2019 and the time has just gone 1202 British summertime and we're looking ahead to next week, which is Monday the 15th of July until Friday the 19th of July And we'll take a quick look at what kind of we're typically talk about the major events of the week that has just ended So we had Jerome Powell the head of the Federal Reserve speaking in Washington, DC for two days This week and the takeaway message is that the Federal Reserve have left the door open to cuts in interest rates Traders have sort of divided over this over as to when the interest rates will come and how deep they will be but mr. Powell talked about how there are certain tensions and trade tensions have made a few kind of cross about a few cross currents There is some and that there's some signs that abuse economy is slowed down You also pointed out that unemployment in the US is near a 50 year low. It's also worth mentioning the The job the earnings growth rate is nearly double that of the inflation rates The things are looking pretty good for the American workforce But there are still some uncertainties in there and mr. Powell has certainly alluded to the loosening of monetary policy from the Federal Reserve So by and large we had a good run for global stock markets Looking at a few charts in a few minutes US China trade talks resumed this week The usual scenario or units US channel trade talks are closer to a closer to getting up the ground again The usual scenario whereby the relationship between US and China is still not great, but it hasn't gotten any worse and The relationship between the two sides still needs a lot of work But because you didn't really hear any negative news out of it That has really led to that is really brought about I was going to add it to the overall positive sentiment We did here have some have some credit numbers out of China this morning Chinese input is the the US dollar quarter once Chinese imports declined by seven and a half percent I was larger than expected and Chinese import exports declined by one point three percent But that was actually better expected economists were expecting a decline of two percent So a solid drop off a strong drop off and imports suggest domestic demand in China is weak But the fact that exports dipped from the dip dipped as bad as China's at a commerce unexpected will suggest There's a slight decline in demand for Chinese goods and that could be construed as proof that the trade strand off between the US and China Is starting to take turn to take effect? I'll talk about a couple of the major events next week and then I look at some charts Speaking about China and on Monday We have a number of Chinese economic indicators out fixed asset investment retail sales and industrial production. This gives a flavor of what's going on domestically within the Chinese economy any signs of weakness could could could be argued that President Trump's tariff war in China is winning Look ahead Monday through Thursday next week with a number of major US banks city group Goldman Sachs Morgan Stanley JP Morgan all have a quarter the updates Wednesday here in the UK Across Tuesday Wednesday, we have the UK unemployment rate and UK unemployment average earnings and CPI we on Wednesday We have euros on CPI and Canadian CPI also Wednesday We are second quarter figures from eBay and Netflix on Thursday We have Australian unemployment and on Friday and Friday Thursday. We have full your figures from sports direct So I've taken a look now at some of the the major markets on Some of the major markets starting off the first hundred. So the wider view Basically try 2019 is at the first hundred is in the solid upward trend. We can see here Earlier that this month the first 100 did manage to hit a level not seen since August last year So it's in clearly the bullish trend continues Although we have managed you can drift a bit lower this week But seeing as buying on the dip has been a popular strategy by and large after 2019 We could see fresh buyers in the fold should we move a bit lower? So kind of seven thousand Four hundred and forty region this year here might act as an area of support And so could this region here in around seven thousand four hundred a big psychological number and also the fifth They're moving average this blue line here which comes into play at seven thousand three hundred and sixty five This area could provide support should we see a move to the downside if the wider trend those miles you continue We could be looking at heading up for this area here in around seven thousand six hundred and forty and the move beyond that Could take us for this area in round seven thousand seven hundred and ninety I'll be referencing the 50 moving average in the next couple of charts But this will remind you the put two hundred is comfortably above its 50 day moving average Take a look now. What's going on over in Germany similar situation whereby broadly speaking? We had a major solid valley from late December 2018 until early July granted We have managed to kind of have a quite a few knit hours dower sessions in In July, but nonetheless the kind of wider upper trend is still very much in play If you do manage to kind of drift lower Support could be found from in around this area here relative far away from it at 12,300 or possibly even this blue line the 50 moving average in at 12,187 So at the market the wider upper trend does manage to continue We could be looking at testing this region here 11 not seen since late july last year So nearly a one year on a 12,887 which again a nice reminder that the DAX is comfortably above its 50 day moving average Take a look now. What's going on on the s&p 500? So the s&p 500 managed to apologies as the The Dow Jones, which will come back to you in a second anyways The s&p 500 so the s&p 500 managed to Print at all time high this week and We are recording this video over two hours in advance of the us open But it would look as if the the s&p 500 is going to open around 3,006 which would be a record high for the market. So that gives an indication of What sentiment is clearly been bullish It's been bullish quite a bit partially because largely driven by the fact that The Fed reserve left the door open for interest rates being lowered If you could look to kind of push on higher from here Seeing as we're on chart territory People might be looking off the kind of big numbers 3,010, 20, 30 so on and so forth But if you do manage to have a pullback support could be found from this area here in around 2,960 or maybe between the 2,960 down to 950 This zone here or perhaps even now to this this this line here in a 2,910 and once again The s&p 500 is comfortably above. It's 50 the moving average this blue line here Which active support in the middle of June Keep and that comes to play at 2,891 I'll take a look at the Dow Jones notice in a second similar scenario last night the Dow Jones closed above 27,000 Record closed for the Dow Jones. We're appearing as if the Dow Jones is Sizing up to be opening at around 27,165 which would be an all-time an intraday high for the Dow Once again sentiment is clearly very strong and very positive If you can't put a press on higher from here chairs, what might be looking off for a 27,203 or so on and so forth If you do manage to kind of drift lower this area here in around 2,600 and Sorry apologies 26,660 this area here connected support are possibly even down to this this zone 26,500 down to 26,400 And why I've been we're talking about the 50 the moving average so much is that they're all the Dow the s&p The DAX and and the 1,600 are all called to be above their respective 50 the moving averages and Dow theory tells us that the averages must confirm each other So essentially why they're all above their respective 50 moving averages It makes it more likely that those indices are going to continue on in that direction. Obviously, there are no guarantees But it just makes it more likely I quickly take a look at the pound the first of the US dollar because we've got some foreign british economic indicators coming out next week So starting dollar has been in a solid dollar trend We've managed to bounce off the lows But the last couple of days the palace only really gained ground because of the softness in the US dollar And if the starting can't salvage a decent rally on a week when the federal reserve are dropping hints about interest rate cuts What you know that that really says it all that that really gives indication of how how How lackluster sentiment in the pound days So if you do manage to press a lower from here and take off the recent lows in at 12440 that sort of area We could be looking at heading back down towards We could be looking at any back down towards this area here in at one spot 23 65 If you do get any any bounce backs in the pound versus the US dollar the 126 area could act as a as a Resistance self consolidation around there at the amount you press on the higher there the 128 area And we'd really need to be going to have taken out 128 before we can Be going to begin to think that this downward trend that's been in play for a number of months has come to an end Uh, thank you for listening. That's all for me this week Any comments you want to make on this video, please feel free to leave review on google views. Thank you very much