 Hello, traders at CMC Markets. Welcome to a new update by RRG Research for Monday, the 17th of October. I am recording this on Friday morning, the 14th, before the market opens, but after the big reversal that we saw in the US last night. My name is Julius de Campanara and I am presenting to you from Amsterdam in the Netherlands. Let's take a quick look at the relative rotation for world indexes. And you've got the RRG, the weekly RRG for this group in front of you. And there's a few things that stand out. First of all, quite interesting is the weakness for the NASDAQ compared to the strength for the Dair Jones Industrial as well as for the S&P 500, which is kind of entangled here with the stocks index. Dex is improving. The strength for the Nikkei is definitely still there. So is the weakness for the Hangsang index actually. But more interesting is the nice and strong move continuing of the Australian market of the ASX 200. The AS51 is the ticker symbol here, is pointing further into the leading quadrant, which means that it is picking up on both the JDK-RS ratio scale and the JDK-RS momentum scale, which is a good thing. So we definitely gonna dive in a little bit further into that. And then actually the S&P 500 is worth looking at because it's the S&P 500 and we had a massive reversal day yesterday. UK picks up nicely, KAC is not doing very much and Russia is kind of interesting. I'd like to stay, personally I'd like to stay away from that market for the time being, but it is doing quite nicely. If we zoom in on those rotations on the daily then you see a little bit more nervousness probably. Here is the Russian index again. You can see the Dow picking up, the S&P making that sort of jackknife move moving back up. NASDAQ is confirming what we saw on the weekly. UK is going through a setback. Here is the DEX going back up, the KACs of all of Europe is kind of rotating back up there. Australia here on the daily saw a, it's on a relatively weaker day, but the strength on the weekly ROG is definitely there. And you can see that if you look at in the group as a whole here, Australia has the strongest market on the daily scale because it's the highest RS ratio value. Now look at the individual charts here. If we start with the weekly version for the Australian market for the ASX, definitely a nice turnaround based on the ROG lines which are now both pointing upward and above 100 positioning it into that leading quadrant. But from a price point of view, we nicely touched on that previous low which definitely start to act as support now. As it did a number of times in the past quite notably here in August 2018 that previous peak that acted as resistance here in 2019 as support a little bit later. Again as support in 2019 in August. Then we breached it, we brought to it and now it was support and it is support again. So based on this price action, it's very well possible that we're going to see a move back to the previous high keeping it in this range here which is around 7100. If we take out 7100 then we're completing a nice double bottom which could mean even more upside potential for the ASX. We're not there yet. If you look at the daily version that's a little bit more granular and then you can see how this test of support actually lost it for about six days starting September 26th and then the nice move upward October 4th testing resistance and it looks as if we're putting in a new higher low which is a strong thing because it means that buyers were coming in more aggressively. They didn't want to wait until we had another test of that 6400 level so when a higher low comes in that's usually a strong sign. Confirmation of this strength will be when we take out 6800 on the upside in that case 7000 and 7100 which is the level that we saw on that weekly chart are our next targets onto the S&P 500. If we start with the S&P 500 then we can see that this is obviously still a very weak trend. On that weekly scale you can see we actually breached the previous low. We're now resting on a support level that comes from a consolidation back in September 2020. That's where we're now bouncing. On a relative perspective versus the world the S&P is actually still doing very well. You can see that that RS ratio line is well above 100 and the RS momentum line has been oscillating around the 100 level which if you visualize that on an RRG means that we have that continuous rotation on the right-hand side which is the characteristic of a strong relative uptrend. So in a relative perspective the S&P is still doing very well. From a price perspective we're now getting into a very interesting region because we're in that support zone between let's say 3550 and make it 3700. The area of the lows here, lows here. If we move to the daily chart we can see that much better and you can see that nice slingshot move that we have yesterday because at the opening yesterday morning in the US the market dropped again below its previous low basically confirming the downtrend that's already in play. But during the market hours we saw that strong reversal pushing it back up and this is a it's called an engulfing, a bullish engulfing candle pattern which is a strong sign. Now it's definitely a strong sign for the near term but we saw the long-term weekly chart and even on this weekly you can see that that series of lower highs and lower lows is still very much intact. So we're not out of the doldrums yet in my opinion. We do need to see more breaks to the upside, more upside follow through to actually be sure that this is the bottom in the market and we will go higher. The positive divergence in the RSI is definitely helping and again this bullish engulfing so for the near term I expect the S&P to give us a little bit of follow through but you can see that there is resistance coming in from that downtrend line that coincides with the gap area here and more importantly 3,800. If we take out 3,800 on the upside in the S&P 500 I think for the near term that will unlock more upside potential towards the next resistance levels which which are plentiful inside the S&P 500. However it is a good sign we got to start somewhere keep an eye on it especially for the near term I think that there is a little bit of upside in the S&P 500. Now you know that we've started to try to come up with some actionable ideas and individual stocks and for this week I wanted to run my scan on the Australian markets on the ASX universe the ASX 200. We're going to describe those names in the accompanying article and to give you a heads up we actually found 3 potentially interesting individual names in the Australian market which we will describe in the accompanying article with this video. Thank you for watching and I hope to see you again next week at a new episode of this ROG research update for CMC markets. Next week same time same place.