 Hello and welcome to the Monday market update with me at David Madden. Today's date is Monday the 8th of April 2019 and the time has just gone 12 12 British summer time It's been a fairly quiet start to the European session today It was a fairly subdued session in Asia overnight and that's basically followed on to what we've seen here in Europe today some of the major headlines over the weekend The Chinese government released a statement Stating that there was new progress made in the trade talks between the US and China which took place It's finished up the most recent round finished up at the back end of last week there's also an article on the Chinese government website stating that Beijing are looking to caught the reserve ratio requirement at a commercial banks in China By trimming that the requirement that I should essentially encourage Lending by banks and it's the moves that is that I'm the Beijing authorities have Acted on on number of occasions in recent years essentially it's a way of actually boosting liquidity And the idea is that a small smaller businesses and individuals can get get a get easier access to loans I'll actually help kind of stimulate the economy and Some of the economic indicator as you've seen out of China in the last few weeks Have been shown that we seem to be kind of over the kind of the worst of the recent kind of slowdown in economic activity So this is something that China could do quite regularly economy goes through a bit of a soft patch or a softer patch And then the Beijing authorities are react to it That continues to be uncertainty in relation to Brexit as it stands The UK is set to leave the European Union on Friday Which is the 12th of April and the default position is no deal unless something is agreed between now and then There has been talks between the UK concern a party and the UK lip party that hasn't really about to do anything so far on Wednesday, which is the 10th of April the EU EU are going to be having an emergency summit And that the summit will be the a very extension request which Theresa May has already lodged it would be Theresa May is looking to extend Brexit date until the 30th of June There's talk that the European Union don't aren't in favor of a short term extensions that the more they're more keen for a quote flexible one-year extension It would be for the time being the financial markets aren't pricing in the reality of the no deal So the pound has removed a whole lot today But even though the default position is that you can't leave without a deal At the end of the week for the time being the markets aren't pricing that in so Essentially the markets that are assuming some sort of deal will be a range between now In the next couple of days or else about the EU will grant Theresa May some sort of an extension So take a look now at some of the major markets and see how things are me going Starting off with the first year London Russian it is worth pointing out European Italy markets had a good had a good run last week So a bit of a move to the downside today isn't entirely a bit of a surprise It's a very similar picture across the various Econ markets I got the Scotts now the next few minutes starting off the first year London rush It's been a nice rebound move since late December a my series of higher highs and higher lows Only recently we've actually got up to here at level not seen since early October So I gave you an idea of the multi-month highs that we're reaching the market continue The markets continues to be in the support trend Should we push on higher from here a cuba lucky a target indicator mid-september high of 7,500 and 58 and he moves to the downside my fans to support in around this area here Big psychological number of 7,400 and even if you drift below that sport might be found from this area here in around 7,370 and if you have a size of break below that you could even head back down towards this red line here Which is the 200 moving average and that comes to play at 7,220 or even the kind of 7,200 mark We see a lot of consolidation in around that area So these are areas to keep an eye for should be breaks out of 7,370 Take a look now what's going on over in Germany on the tax So the tax Similar to the you've got to be bouncing back nicely since December We can see here that we've got quite a steep move to the upside in the last couple of weeks The tax seemed to have kind of run out of steam in around the kind of the 12,000 marker Just just both the 12,000 the tax seems have run into a bit of resistance And a few occasions this could have been hanging around there But hasn't really kind of moved that much beyond this at the same time I didn't really move that much below liner But it seems to be a 12,000 the big psychological number is acting as a bit of a sticking point It's been a solid trend for many months now And it's been a particularly sharp upper trend for the last couple of weeks And should the upper trend continue on from here It could be looking at targeting this area here in around 12,120 We can see on a few occasions it acts as support in July And also in August last year and acted as a resistance briefly in September last year So keep an eye out for that area there And should we break north of that we could be looking at heading up towards the late September high In around the kind of 12,000 excuse me Should we break north of 12,120 We could be looking at heading up towards the kind of late September high This area here in around 12,460 That kind of region should we go beyond that We could be looking at heading up towards the kind of 12,600 area Any move to the downside in the tax might see new buyers enter the fold As seeing as buying on the dip has been a popular strategy with traders for the last number of months So I'll be sure you drift lower from here We could find support coming to play in around the 11,823 mark Or even from this red line here the 200 day moving average Which comes to the play just north of 11,700 I take a look at what's going on over in the US in the Dow Jones The US markets are in better shape than their European counterparts For a buyer of the European, the DAX and the FTSE Have been recently racking up multi-month highs Where the Dow Jones and the S&P 500 Which we'll take a look at the S&P 500 I'll do the Dow in a second Are not too far away from the old They're not only at multi-month highs But they're also at fairly close to their all-time high So as you can see here on the S&P 500 It's managed to retrace the vast majority of the ground That was left between October, the all-time high And the lows of late December So the more market retraces of the previous big move Which is this major sell-off here between October and December The more likely it is to keep it in you So we've received about 80-90% of the negative move So I say it's likely that we're going to continue To push on higher from here And if you do push on higher from here on the S&P 500 We could be looking at moving beyond the kind of Big psychological number of 8,900 Sorry, part of the 8,900 apologies Nobody heard that 2,900 2,900 is the next big psychological number We're currently at about 2,889 on the S&P 500 And if you continue to press on higher from here We could be looking at trying to get in 2,900 And if you go beyond that The next year at the KFMF4 We'll be in this region here Which is essentially the all-time highs 2,940 And obviously buying on the dip has to be a popular strategy In the last few months So if you do manage to drift lower on the S&P 500 The support might be found from this region here This line along here Which comes to the play in around the 2,865 area And even should we drift below that That's what might be found from the 2,820 2,815 area Which is this line along here Now if you draw a line between the highs The highs of mid-October and mid-November and mid-December It's somewhere around the 2,817-2,820 mark That area acts as fairly decent resistance When the market was pushing higher in March So there's a possibility it may act to support Should the market have a reasonable size to sell off in the near term Take a look now on the Dow Jones Similar situation provided that Dow Jones Has managed to recoup the vast majority of the ground That has lost essentially between October and December So since December is making it very solid to come back As you can see here We're expecting the Dow to open above 26,300 If we can press on higher from these levels here We could be looking up toward this area here Just shy of 27,000 Big cycle-odged lumber And keep in mind that at the all-time high Was north of 26,590 Apologies, 26,950 So somewhere around the not too far away Of 27,000 was the all-time high And we could be looking at pushing up towards that level again Should they could have polished the trend That's been in place for a few months or so to continue But even if it emerged to have a bit of a move to the downside Support might be found from this area here Which is in around the Which is this trend line This area from this line across here From the early November high of 26,278 And even if you drift below that The big cycle-odged lumber Support number of 26,000 might act as support And even if you drop below that This blue line here The fifth day moving average Which comes to play just north of 25,700 might act as support We can see here on a few occasions Only the back end of last month The fifth day moving average Active as support And if a metric is active as support Recently it makes it more likely That it will do again in the near term Starting off I'll take a look now at the gold market So gold has broadly been Gold has been bouncing back since August And really since about mid-November Gold has been the 30th solid upward trend In a series of higher highs and higher lows But we have seen a bit of a sell-off The sell-off in both February and also in March As it raised to be interesting for a buy The market had a fairly sizable sell-off in March And the lows in March took off the lows in early February When the market managed to push higher The highs in March failed to take off the highs in February But then again, that being said When the market sold off again in April We'd seem to kind of hold above We'd seem it seemed to have held above the march low So essentially while we still remain above the march lows here In around the 1,280 mark If you can hold above that It's likely we could see another move to the upside Because the wider upward trend is still very much in play And to be honest, even if you look at the lows Of January and around the 1,276, 1,280 in February In March rather If you can hold above that It's likely that we could see further gains to be made Because of the continuation of the wider upward trend And if you can press on higher from here Keep an eye out for the late March high this area here Which comes into play in 12,24 Which is essentially this high here And should we go beyond 13,24 here We could be looking at targeting the 2019 High of 13,46 in around here If you do manage to break below this area here The kind of 12,7,6,12,80 We could be looking at having back down towards the 11,65 area Or perhaps even low And back down towards this red line here The trend moving average which comes into play Just shy of the 12,5,0 The trend moving average comes into play at 12,48 Take a look at what's going on On the oil market starting to break crude So as I've quite a positive run recently There's been a certain effort from OPEC To compact supplies So we're seeing that We're also seeing given the overall optimism In relation to the US-China trade talks And the Chinese economy is doing a bit better Than it was at the beginning of the year We're seeing oil reach 40,000 highs Grounded, the moves to the upside Have to be spectacular But nonetheless the conditions continue To kind of slowly but surely try higher So the trend for the last few months Has certainly been to the upside We're now firmly above the trend moving average Which comes into play at 69,45 And if you could hold above that We could look at pressing on higher from here And if you'd venture targetting this area here The early November high Which comes into play at 73,53 And even if you do drop below the trend moving average We could be looking at heading back down towards The mid to late march lows Of around $66 per barrel It's a service innovation on WTI Provide the market standard and solid up for trend For a number of months In fact today we've actually managed to To actually e-cap another month in one high Another high not seen since early November So the trend is very much to the upside You can see how that the trend line here The turning moving average is likely actually a support And should we hold it on the support Which comes into play at 61,44 It's likely we could see further moves to the upside Going front here Pressing higher Keep on that forward This area here Which is in late November October rather in a 67,80 Should we have a move to the downside And should we actually break below The turning moving average in at 61,44 This area here $60 $60 mild act as support Not only it's a big psychological number But also we can see on a few occasions The market kind of $60 on the way up The market is pushing higher Did manage to act as resistance So it's possible that previous old resistance Might become new support Take a look now at the euro dollar So the euro has been in a pretty solid Dowered move for the last few months We can see here between My series of lower lows and lower highs Grounded some 40 word at the valley In mid to late March managed to take out the highs Of February but as you can see Since then there's been a solid move To the downside And should the wider Dowered move in Euro dollar continue We could be looking at retesting The march lows down around here In at one spot 1176 And should we break below that We could be looking at it back down towards One spot 1110 If you do manage to have a move to the upside Resistance might be coming to play In around the one spot 13 area If you can see on a few occasions Didn't manage to act As we have seen a bit of consolidation In around that mark And if we go beyond that We could be looking at trying to be in One spot 14 And the big area to keep an eye on for For your dollar to the upside Will be one spot 1448 I would act it It was the high in It was the high of mid Bit of a mid to late march And we really need to kind of Break beyond that Before you can actually say that We kind of snapped out Of the recent negative move Keep in mind I'll be discussing in a second But we do have a meeting From the european central bank on wednesday So please keep an eye out for that And lastly now on the markets front I'll take a look at pound dollar Like I said Even once going out of brexit That the EU is somewhat on wednesday In relation to the extension And also a possible deal between The conservatives and their priorities So keep an eye on that If you're going to trade any sturdy crosses Town dollar has been nice Solid for a trend For the last few months A series of higher highs and higher lows And even though it's been drifted lower More recently Essentially while we can hold Above the kind of Psychology important one 30 mark Which essentially coincides With the Trading moving average this red line here To be fair the trading we are Average it's a bit below that It's in at one spot One spot 2978 If we can hold above that metric It's likely that we could see Further gains we made In pound versus US dollar And if you can press on the higher front here We could be looking at targeting One spot 32 And beyond that we could be like Ending up towards the one spot 3360 area If you do have a size of the break Below the trading moving average The next area of potential Support could be down around here The mid-February lows In around the one spot 2775 area In around here What I'll do quickly now Is have a quick look at the week ahead If you go to your website cmcmarkers.com And under news and analysis You will find the week ahead article And looking ahead to Wednesday We have both the EU summit And the Brexit deadline And this is also going to Ties Wednesday and Friday Whereby the EU summit Is likely that we could see The extension of the Brexit delay being passed But as I said That the current Brexit date Is the 12th of April This is Friday But let's talk about the EU I'm keen to have a longer Extension this summer In the region of one year On Wednesday we also have The ECB break decision The policy itself Is likely to remain unchanged But any kind of comments In relation to the size Of the proposed Taric liquidity plan Or anything else In relation to changing Of monetary policy That's going to be kind of Carefully watched On Wednesday We have full year figures From Tesco On Wednesday We have half year figures From ASOS On Wednesday For a busy day We have the Fed minutes So we'll get the most recent Fed spending We can get minutes From that particular meeting So it gives an idea What the Fed are looking at And on Friday We have Chinese trade figures So we'll also be keeping it off For how the Chinese economy is doing I'll quickly see How they're going to export side See how they've been impacted By the Chinese Or the American tariffs rather And see the Chinese import That gives a flavor For domestic demand In China And then as we've got on Friday We are back around to reporting season We have Q1 figures From JPMorgan Chase And Wells Fargo over in the US Just before I go 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 Feel free to Leave a review on Google Abuse That's all for me this week Thank you very much