 Good morning and welcome to the Monday market update with me David Madden today's date is Monday the 14th of October 2019 and the time has just gone 12 15 British summer time. I apologize. I should have said good afternoon It's been a pretty negative start to the European equity market session. There's a few things going on First of all in relation to US China trade The background the last week it looked like the US and the Chinese and trade negotiators had Made progress towards having kind of phase one of the trade situation being taken care of We've just heard from on the news wire this morning in the last hour or two that China actually want to throw the talks before we have Before both sides sign up to the kind of phase one of the trade talks. So that's hanging hanging over equity markets Also speaking of negotiations The breakfast situation is still very much in focus Back in the last week there's a lot of optimism to the meeting of British Prime Minister Boris Johnson and Irish t-shirt Prime Minister Leo Riker, but The optimist was fatal it over the weekend. There was announcement from Michelle Barnier The EU's chief negotiator that the trade talks at the talk tell the weekend were difficult So it's a bit of is it less optimistic in relation to that Obviously we had the the Queen's speech here in the UK today and not not a long ago So the situation about how the arrangements are going to play out is very much going to be in focus and The takeaway message is that the footsie was a bit lower and the British Parliament is a bit lower So there is less optimism in relation to what's going on surrounding Brexit There's continued concerns in relation to China in relation to trade. We have Chinese Exports and imports which show declines on the month and so they not only did they have the clients on the month They also came in below expectations So there is going to continue concerns that domestic demand in China is in decline On top of that is also additional concerns that demand for Chinese goods outside of China is also declined So it would appear that the US China trade spout has any impact around the world on demand around the world So take a quick look to the week ahead The week ahead article can be found on a website if you go to seemsomarkets.com under insights and then use analysis you will find The bulk of the myself and the other analysts updates. So look ahead to tomorrow on the on Tuesday We've UK unemployment and average earnings JP Morgan a third quarter numbers out on Tuesday on Wednesday We have UK CPI US retail sales and full year figures from ASOS as well as third quarter numbers from Netflix Jumping head to Friday. We have third quarter GDP from China The London Stock Exchange would have its third quarter update On Friday, we have the all-important EU Council meeting. This is going to be the big focus There's a lot of already talk that Prime Minister Boris Johnson is gonna have to ask EU for a sanction And this is if that is the case, this is where it's gonna play out And finally on Friday, we also have third quarter numbers from Coca-Cola looking at the at the footsie 100 Once the action track gets up and running. I can see here is that The footsie essentially since our left over has been pushing higher like global stock markets It's been pushing higher, but notice how it's still below this red line here the 200 a moving average and that comes to play at 72 56 and while we hold below that metric It's like we could see the kind of the more recent kind of negative move continue I should the market turn over on south yet again We could see the market retest the recent lows of just kind of in around the kind of 7000 region But if you do see a break north of the of this particular metric and we do press on higher from here We could make a retargeting 7400 for all this is high here in around 7400 and 40 I'll take a look now what's going on over on the DAX We can see that the DAX is in better shape than the footsie 100 So take a look at the DAX We can see here that similarly the DAX was impressing higher since since early October Be a nice decent move to the upside But we could see here that it's a bit lower today It's giving back some of the gains from the very bullish move that we saw on Friday But it's still in the wider upper trend and if you do press on higher from here We could be getting directly this zone here in around 12,600 the highs of late July If we go beyond that you can look at what targeting 12,660 the highs of early July And even if you do have a drift lower on the on the DAX We could see support coming coming to play from this zone here in around 12,300 If you move below that some more could be found from this line here The one ready moving average and that comes to play at 12,131 We can see a recently acted as but resistance and support recently And so if it's been important in the past it makes it more likely it's it will be so important in the future Take a look what's going on with the S&P 500 Broadly speaking, but in a fairly decent upper trend since August I can take a look at a more recently since early October We can see you see the nice couple of higher highs and higher lows And if you do about as you continue in the wider and more recent and wider upper trend We could be like you're retesting 3000 I forgot beyond that you could be targeting this zone here in around 3020 if the market does manage to push on lower from here support could be found from this blue line here They're fitfully moving average and that comes into play in at 2938 there they're abouts we can see in a few occasions Nectaric Actors but resistance and also support in the not too distant past So it makes it more likely that we could have a We could have it could be of importance in the near term If we do have a size of break below the 50 moving average We could find support coming this zone here just north just the snort of 2800 and 80 I saw you really if you break below this red line the 20 moving average of 2800 and 64 shouldn't we kind of begin to be concerned about what's about About the state of the of the Dow Jones Taking a look on what's going on on the gold market We can see that Gold had a major rally For months and months and months culminating in a six-year high that was achieved in September But since then see the market a move of a move with the downside a lower low a lower high Another lower low and what could be a lower high here So why we remain below the kind of 1520 mark here and also the 50 moving average at 1507 we could see continued pressure on the on the gold market So we could be re-testing the the lows the lows in early October in a sub 1460 and if you go below that we could really carry back down toward this zone here down on 1453 1430 On the other hand if the if gold market falls back into the wider upper trend that's been in play And we go back north of 1520 we could be looking at re-testing 1535 and beyond that up towards 1557 To click on what's going on on the printer all markets So the the trend since for the last month has been very much at the downside a very aggressive sell-off But we can see here on Thursday the 3rd of October The market this this particular candle in this daily camp here's had a very long week on it That long week as far as candlesticks and the charting goes denotes indecision So if I had a major sell-off then we have a side of indecision I would see the market kind of push on higher from here. So the market has rebounded So we could be looking at scenario whereby the market is kind of edgy higher I could be looking at re-testing this red line here the attorney moving average at 64 spot 77 but if we don't The market doesn't doesn't get that high up of the market managed to turn over on set yet again It could resume into the kind of more recent downward trend for the past month We could be looking at re-testing the recent lows in a 56 spot 71 And then if you go belong below that we could make the attack in this zone here down around 52 Take a look what's going on on the euro versus the US dollar So the euro versus the dollar the wider theme is very much a downward trend But in the last few in the last few weeks a couple of weeks We have seen the euro pull back a bit So the market the euro grinding higher here it ran into resistance from this blue line here the fifth Moving average that comes to play in at one spot 1044 odd But if it holds below that metric it's likely we could see the euro Be be maintained in its more recent downward trend We could see it heading back below 110 Reaching it go south of 109 and if you take out the recent October low we could really head towards 108 It is worth noting how the euro daughter of anti-resistance back in or a Augusto is possible We could see a repeat of that the metric the the market may fail to get back above the metric But if you imagine you get back above the 50 movie average and have a size of break above it We could be looking at retesting this zone here in at one spot 10 Sorry, it's just north of one spot one spot 11 And if you go beyond that we could be looking at retesting the late October mid October high of one spot 1164 Forget the pound versus the US dollar pound dollar The wider trend is to very much the downside, but as you saw here. We saw decent We saw what appears to be a count a hammer formation on this candle here Remember how I was talking about break through it all how we saw the long wake which denotes indecision Well, it just appears to be the case that can turn your own force on the pound versus the US dollar Marker managed to press on higher from that from that particular candle Found support from this zone here around one or two and now we're constantly back above the 50 moving average Just blue line here But we did manage to kind of run out of steam after at the tourney moving average this red line at one spot 27 spot 12 as he mentioned a lot of Chatter about Brexit will borrow chance to get approval both Parliament and will also be approved in Brussels So it seems to me that why would you remain below the tourney moving average? It's like that that metric could act as a cap to any potential gains But if you do have a bro of a breakthrough we could sit and talks We could break beyond that level and head toward this zone here in around one spot 28 If the market on the other hand those matters you can have Turn over and stuff yet again Recubic you're targeting this zone here 124 and then below that potentially down towards 122 That's all for me this week if you've any comments making this video or any of the other videos We've made here. Please feel free to leave review on reviews. Thank you very much