 Hello Traders at CMC Markets. This is Trevor Neal, Analyst at RRG Research. This is a short-term update for the 13th of December and I'm talking to you from London. It's a busy week for central bank announcements but the big shock would be if they actually did something. Now we're going to start looking at the relative rotation graph and today we're going to be looking at the US stock indices, the FTSE and the DAX. As you can see that we've got a dispersion, we've got a good direction in the DAX, a little bit of blunting of that. The next is the Dow Jones industrial average which is pointing eastly. It's not climbing so it's not positive momentum, it's pointing eastly. Then we've got the S&P which is highly correlating on this daily RRG with the benchmark which is the MSCI world. So it's moving with the MSCI world itself. The NASDAQ is hooked around in the lagging quadrant, an unfamiliar place for the NASDAQ to be there, turning up but still too far on the left and then most left of all is the Putsy is in the improving quadrant. It's moving eastly, not in northeasterly, it's eastly and it's still quite far to the left. So in the order of best to worst it's DAX, then Putsy, S&P, correlating with the benchmark and the NASDAQ improving. The thing is the stock markets themselves are all going up so when we look at the S&P which is correlating with the MSCI world we'll see a bull market but which is stronger bull market that's over on the right here and which is weaker bull market and they're all bull markets is on the left here. So it's a question of it's a bull market in stocks but which is the best one to get the outperformance to generate alpha over the average which is in here. So let's look at these we'll go look at the S&P first because if you like that's the state of global stocks and then we'll look at what's better and what's worse in it. Now here's an hourly chart of the S&P. The S&P had a major break a couple days ago when it broke through 4,610. It broke, pulled back, nice rejection as it retested the breakout point and then it's powered ahead nicely. On its own there's a great looking chart. MACD is positive and the gap is now widening or narrowing and the RSI is powering ahead here. So it wouldn't be bad or wrong or a bad thing to be in the S&P but can we do better. Let's start with where we could do worse which is the FTSE. So on the FTSE this doesn't look like that kind of bull market. It is barreling up in a channel though recent days when the other markets have been going up strongly it has pulled back and you see here we've got this twisting around sort of behavior in the MACD here up down up down up down. The channel is generally upwards but it's currently the move is downwards when everything else is moving up. So this is not looking attractive at all maybe it's going to come back to to support on this trend line perhaps so it's too difficult to draw they don't really line up properly but it would be around 7,510 area but this is a stand-aside market it's not even a good market to sell because the whole complex is going up. Now next is the NASDAQ again hourly chart here. The big break for it was a 16,120 breaking through that then we powered ahead from that since and so it's improving on a relative basis but it's still in the lagging quadrant. The MACD is looking good the RSI is looking good as well but and it wouldn't be wrong or bad of course it wouldn't to belong of this it's looking good smoothing towards some higher resistance but it's it's looking good but it's not actually the best. Where would you buy this at such an extreme value I'm very difficult to know what to say here without any sort of pullback in it but let's look at the ones which are even stronger. This is Dow Jones industrial average this has got a nice uptrend in it low high low high low here and high low here nice uptrend breaking through resistance approaching some resistance from 36,950 but it put it pushing forward but a bit of a worry here is the decline in momentum in the MACD but it's not severe still got high high high and high high high and it after this pause correction here it's about to give crossover and give a positive signal again so I'm not too worried about that. The RSI corrected quite sharply here to back to about 60 and then has rallied correcting an overboard condition here and powering ahead again and this is giving it its position the the relative performance of it is extremely good. Now to the DAX those of you that have my last report on this from yesterday knew that I was a bit concerned about the loss of momentum in this fantastic bull market that we have in the DAX the latest leg of it from the 28th we had a nice uptrend line but what I had noticed was on the MACD we'd got severe loss of momentum and also on the RSI a severe loss of momentum in this period and I suggested that it was likely that we were ready for a pause. We're having a sort of pause it's hardly a pause I must say and so as pauses go it's not much of a pullback I suggested previously that there was support at 16,730 and then more support which would probably hold at 16,600 but I must say that given the the resilience of the market that this pause may actually already be over on the MACD the lines are still widening on the downside so we still have got continuing loss of momentum. On the RSI we've come down and we need to break this downtrend line in the RSI which is currently at 72% to say that this pause is over but I think that if it is close to over I think the longer term intermediate term trend is strong this pullback is remarkably weak I think that that that five area. So there we have it the we've got a big bull market going on in in stocks but there are leaders and daggers this says very easily revealed in the RRG chart the S&P is moving with the average of all the markets the Dow is better than the S&P relatively and the DAX is better than the wall relatively and it looked like it was going to have a bit of a pause but it looks as though the pause is very meek and mild and it is already getting close to getting ready to resume its its rise its leading rise and the poor old footsie is yes we've got an upward channel but we're on the downward leg of the upward channel which is counter the direction of everything else and it may have its day it's in a position to do that but not at this moment. I thank you all very much indeed I hope you found this helpful it's been a pleasure to speak to you I wish you a great day and may the trend be with you goodbye