 Hello and welcome to the CMC markets chart of the week video with myself Dev Madden, market analyst here at CMC markets and today's date is a Wednesday, the 7th of March and the time has just gone midday, 12pm UK time and this week's chart of the week is going to be the Brussels 2000 or as we call it here at CMC markets, the US small cap 2000. Now the big picture is that the American index like the other major American indices and global indices had a solid finish to 2017, went on to create a record high in 2018, had a major sell-off along with other global stock markets and has bounced back. These vertical lines here that are on the screen are the Fibonacci retracement which is a tool used by technical analysts. The Fibonacci retracement tool can be found under the draw tools on our trading platform and it is this one here that I'm using. Retracement of the move are a fairly commonplace in financial markets. Dow theory talks about how if you have a certain trend or certain move it's not uncommon to see that movement being retracement of one-third, one-half or two-thirds of the original move before the trend continues. With Fibonacci retracement it's a similar principle but the levels are different so the big important levels to watch out for on the Fibonacci retracement is the retracement of 23.6% of the move, 38.2%, 50% and 61.8% of the move. So drawing a line between the high of 2018 and the low of early February we can see that the Fibonacci retracement at very different levels have been respected on a number of occasions and seeing as the Russell 2000 has managed to retrace over 60% of the original Dowert move it's likely that we could see the market retrace 100% and retest 16-16 in the wider term. Granted there's a lot of uncertainty in global stock markets at the moment and in particular American stock markets given the potential of the talk of trade war heating up between the United States and countries like China or a trading block such as the EU. So what we may see is possible we could see some weakness in the near to short term before potentially the wider upward trend continues so taking a look at the areas that we potentially see the Russell 2000 pull back to. If you look here at the 61.8% retracement level at 1539 we can see on a couple of occasions and the lows of the last couple of sessions have there and thereabouts been in that class area. If you look at the 50% retracement level at 1515 we can see that it has been respected as both resistance and support on a number of occasions recently and if it's been respected as support and resistance recently it's more likely to do so in the future although of course there are no guarantees. We've also seen that the 38.2% retracement has also been respected recently in terms of support in the recent week or so and that comes into play at 1492 so between 1539, 1515 and 1492 these are areas that we could potentially see the market drift lower if there is a tension surrounding possibility of a trade war for potentially the market would retest the all-time high of 1616. If you do though have a size of a break south of the 1492 the 38.2% retracement area that could signal that the market is actually going to move lower again and we could set us back down towards 1462 or perhaps even as low as the February low of 1415. Well that's all from me this week thank you very much.