 Hello and welcome to the chart of the week video with me at David Madden. Today's date is Wednesday the 19th of December 2018 and the time has just gone 9 10 GMT. This week's chart of the week is the S&P 500 and starting off on a longer-term view. If you draw a trend line between the lows of February 2016 and the lows of November 2016 we get this trend line along here and as we can see back in October and in November this trend line was well respected. We saw a couple of occasions in recent months where the market bounced off of that trend line and it actually was clearly well respected but as you can see here in December we managed to kind of dance around it on a few occasions and now it is firmly well below that trend line so it's possible that the previous trend line support could now act as trend line resistance and while we remain below that trend line we could see further losses on the S&P 500. To take a look at the price action in recent months we can see the market's been in the classic example of a downward trend. We've seen a nice series of lower lows along here the low in October the low in October and the low in November we're in around the same area but the low in December sorry the high December rather the high in October and the high December are on the same level but the high in December failed to take out the previous highs and now we've seen a couple of lower lows as well. Taking a look at the indicator of the MACD histogram we can see as the market is moving lower we can see a steady increase in negative momentum so as the underlying market is being driven lower we can see an increase in momentum so the momentum is clearly with the sellers with the bulls so with the bears at the moment. If you look to continue to push on lower from here we could be looking at targeting the 2,300 area it's a big psychological number and if you go below that we could be looking heading towards this region here previous resistance in around the 2,491 area. Now if you do see any bounce back in the S&P resistance might come into play in around the 2,600 area we saw a bit of consolidation in that area recently also it's a big psychological number and if you go beyond 2,600 this previous trend I support may act as trend line resistance and that will potentially come into play in around the 2,645 region and if you go beyond that we could be looking heading towards the kind of psychological important 2,700 mark. It's only really if you kind of take out the December high and head north of 2,800 well then we actually could then we become more confident that the recent downward trend has come to an end. Now if you are going to be trading the S&P 500 it is worth noting that later on this evening we have the interest rate decision from the Fed Reserve that will be announced at 1,900 GMT the interest rate decision itself and according to Fed watch there is a 69% chance of a 0.25% interest rate hike and at 1,930 GMT half an hour after the interest rate decision we will then have the actual statement and it's likely that the statement is going to be the highlight of the actual update. I suspect we could have a double hike from the Fed Reserve. Their attitude towards hiking interest rates has changed a bit in the last couple of months but not as hawkish as they once were and Fed watch is actually pricing in currently pricing in zero interest rate hikes in 2019 now that's a big change. Consider only a couple of months ago or 10 weeks ago traders were speculating we could see two or possibly three rate hikes in 2019 so if you are trading the S&P please keep an eye on the update from the Fed Reserve finally if you have any comments make on this video or any of the other videos we've made here at CMC Markets please feel free to leave a review on good reviews and that's all for me this week thank you very much