 Good morning, and welcome to the chart of the week video with me David Adam Today's date is Thursday the 5th of December 2019 and the time has just gone 1130 GMT This week's chart of the week is the Russell 2000 or as we call it on our training platform the US small cap 2000 and the broad theme like many global Many stock markets. It's been as a positive one throughout the year of 2019 But the market spent a fair bit of time actually in relatively range bound state except for I'm afraid the last number of weeks were Mid-October onwards the market like other US markets in particular began to kind of push to the upside and in fact only Only at the back end of November the market hit its highest level In over a year it had a level last seen since in October 2018 So if the market security and a fairly bullish up pretty bullish up for a trend We did see a fairly sizable sell-off a couple of days ago This is in the back of the kind of surprise or shock announcement President Trump that US China trade deal may not be wrapped up Anytime soon and it may be postponed beyond the 2020 presidential election So we just see a major move to the downside in global stock markets The Russell 2000 was no exception, but we have been we have seen Bouncebacks since then what I find it interesting is that The the the lows that we saw this week were nowhere near the lows that were registered in mid-November, so And now worries are on my case appear to be seeing a push to the upside I also see if you take a look at this particular account here on Tuesday we can see that the week is pretty long so that really denotes in decision and now we're seeing We had a solid we had a upper day yesterday, and we're calling the market higher today again Take a look at MACD indicator to make the Instagram Momentum is selling it negative territory, but it's decreasing which confirms you can an upward move we're seeing in the underlying market So it is possible. There's still a lot of chat around that there might be some sort of a trade agreement broker between now and the 15th of December When the US Charis are due to go up on Chinese imports that may or may not happen Sit up in the air, but what we can see here is that markets and yes, including the The rest of 2000 are recovering from that so if you manage you recover from here We could be looking retesting the recent 13 month high in around 1635 and if you go beyond that We then make give me looking at levels last seen In October and early October last year So the next big area to keep an eye for 1365 will be in around this zone here, which is fair is 1700 so that could be more to do it kind of a potential medium term Outlook target should the kind of wider bullish trend continue You know to be really concerned About the state of the market should we turn over yet again I should we take out this low here But more importantly if you take up the lows or early early November this area here in around 1578 and even if you do drop below that We could find some support coming from this blue line here the fifth removing average and that comes into play at 1564 we can see there's some consolidation From that metric on a few occasions not too long ago So the metric has been important in the past. It makes it likely that I make it be important in the future But obviously if there are no guarantees Now one of the reasons why I actually chose the roster 2000 today was that because Given what we're expecting where we're we're we are expecting the roster 2000 to open It's called to be above its fifth day moving average It's we're expecting the open us is in a 1621. That's a 3.6 percent A bold is 50 movie average, which is quite a considerable Quite a considerable gap when you compare it to what's going on on the S&P 500 Whereas SP 500 is Tipped to open higher today, but it's only 2.6 percent. It's above its 50 moving average which tells me that that this is more kind of optimism surrounding the the roster 2000 Also, you know, while we're looking at the S&P 500 chart It's worth remembering in one of the tenants of doubt theory the averages must confirm each other so essentially what that says is that You can be more confident of a certain market move if similar markets are moving in the same direction And that's what we're seeing here. You get the aggressive sell-off on Tuesday We are recovering on the S&P 500 Notice how the recovery isn't doesn't appear to be as impressive on the S&P 500 as it is on the roster 2000 Another reason why I chose to discuss the roster 2000 today So if the market does present higher from here, we could be less retesting 1635 and then be a walk of medium-term longer-term view could be looking heavy back towards 1700 I'll tell you really if you take out last this week's low in around 15 In around 15 87 86 because then we begin to be worried Now if you are going to be trading the at the roster 2000 for any of the US markets And it's worth remembering that tomorrow Is the non-found payrolls report we could see some volatility in the markets at the back of that Also, please feel free to sign up for our webinar My colleague Michael Houston is holding a live event tomorrow at 5th at 1315 GMT covering the covering the issue of the Covering the payrolls figures and also markets reaction to it that can be found on a website Cmcmarkets.com under insights and under webinars and events And thank you for tuning into this video and please tune in next week. Thank you very much