 Hello traders at CMC Markets. Welcome to an update by Archie Research for Monday the 8th of May and I'm recording this on Friday. My name is Trevor Neal and I am presenting to you from London. Let us start as we always do by looking at global stock markets, the major stock markets. First we're going to look at our stock markets doing well versus cash. So being right of this vertical here would be in a stronger uptrend than cash itself, which is neutral of course, and left of it is weak compared to cash. Then we're going to look at stock markets versus each other. So we'll use the MSCI world as the central point across here for it and then we'll look at the stock markets relative to each other. So starting with this one here with the cash in the middle we can see further is in over to the right is still the NASDAQ. It's holding still actually just turning a little bit to the right here. We've got bunched together the European stock markets, DAX, CAX, CAX and stocks and the FTSE on its own a little bit further to the left but still right of the vertical. Henshin is still continuing to flick around here with a long tail so we can after its bounce. But interestingly the Russell 2000, the broad market US market index is right over here in the lagging quadrant. So we're right if we are concentrating on NASDAQ stocks but we're going to break that down a little bit in a moment. Now in this chart the crosshair is the MSCI world index. So if you like an index of all the major stock markets and then these are the major stock markets and you can see again we've got the NASDAQ outstandingly out here in the leading quadrant here in the strongest uptrend bunched together again with high correlation with each other the European stock indices. The Henshin yes coming around here puts he already in the lagging quadrant here. Russell going southwesterly not the right direction at all, S&P of course being a large constituent of the MSCI world never really gets far away from the crosshair here and then we've got the Nikai coming up through the improving quadrant and looking like it's going to pass into the leading quadrant. Another way to look at all this is to look at the sectors. So these are the ETF sector ETFs. We've got two together over on the right hand side far over on the right hand side here. We've got communications and we've got technology. So in other words of the old technology sector here far and outstanding to the right. In fact everything else is to the left of the 100 here compared to the S&P itself. The rest of the sector sectors are in a down in a underperformance action led by worst of all further is to the left is the financial sectors so the banks in other words and we know that the regional banks are particularly weak but all the banking sectors are weak and some of the big banks are now dangerously threatening charts joining the highly leveraged regional banks but over here we've got tech. Now we'll look at the relative rotation graphics still sticking with the weekly sampling of the Fang plus stocks generally on the right hand side of 100. 100 being the S&P itself. Outstandingly we've got Nvidia here really benefiting from the AI boom and also Meta as well. Twitter in a good direction. Testa not in a good direction. Alibaba Netflix to coming more of a westerly direction but so we've really got a very quite unusual structure here where this particular strong sector is dominated by really just two stocks. All of the stocks are good but there's two stocks which are outstanding. Now the S&P has been rebuffed by that 4200 level that we had isolated as a resistance level and breakout of that could have taken us up above the 4300 level the resistance there from July. We have still got intact a pattern of higher lows and so this is really a triangular shape here. We've still got the MACD looking positive, the weekly MACD looking positive. The RSI went up there's no bearish divergence here particularly and it's come down with this bad sell-off that we've had just now. So in the background it still remains moderately bullish in the short term it has been hit very hard. The NASDAQ on the other hand is pushing on forward. Looking at the MACD we can see that nice gap between it and its signal line there showing good strong upside momentum after we held these lows here at 10,600. Now we've got also higher lows pattern in here and we've cleared the equivalent resistance level of 12,800. We're pushing on forward yes we've come down a little bit here but not so dramatically. It does look as though it's still set to with its eyes on this high here from July at the 13,700 there. So this chart looks better than the S&P itself. Now our friend NVIDIA, movie head very powerfully from when we first picked it up in January highlighted it here in these updates as a leader and it's shown itself to be a strong leader amongst the FANGS group which is driving of course the tech group which is driving the NASDAQ which is giving the outperformance over the S&P although the stocks are doing well overall compared to cash. But here we are there's a weekly chart still powered ahead here now so it's broken through what did that 190 resistance where it'd be slightly with these two tops in here but it cleared that beautifully, soared away a little bit of a consolidation and now we're toying with the 290 level. If we can clear that then we could be on our way up to the high of 2021 to 340. The as I said the Bollinger bands the ACD looking very strong there. The RSI is strong it's high reading but it is losing a bit of momentum so the pattern is weakening slightly. The good momentum from the MACD is being countered by a signs of the shorter term message of the RSI which is declining very slightly. Now there's a daily chart of NVIDIA and here we saw that resistance that break to the 290 level pull back now into the consolidation zone and below the breakpoint at 281 to 282. The indicators here the MACD has come down it's below its signal line and the RSI is down at 50% having come down from this higher reading here. So what we've got is a picture of struggle it made the impulsive break but was rebuffed very easily by the resistance at 290 and at the moment it's holding. The background story as I just said look at the weekly chart is that it is still bullish but it's stalling a bit and likely to have some trouble to break through that 290 level. Now there's a weekly chart of that other stock which was doing so well in the FANG plus RRG chart also kicking off in January having broken its down trend line powering up really strongly is META. META has now testing its latest resistance level and that is here at 236 to 40 really so broken through it and then we'll just look at the daily chart in a second but and pull back a little bit to it but look above it here the fall here was very dramatic very fast this means that there's very little resistance if we're passing through it on going up through it so from here up to about 305 from 240 to 305 we've got a rather frictionless area in the chart if it can make this break that is very has come up a lot already but is it possible that this could even accelerate more in the next phase. The weekly MACD says yes it says it's very bullish it's above its signal line and it's also the gap is strong there on the RSI we're holding up very well here it's not a bearish divergence but it's not pushing further forward from this high to this high here so it's it's very strong but extended I suppose is the correct way to put it. Now looking at META from a daily point of view we had this results based a big gap here up to and slightly through that long-term resistance level and then we've come back and we're starting to are we filling the gap of it to fill the gap it would be down to 220 or is it going to hold in here now the gap theory the market has a natural tendency to want to fill gaps we had the gap here the last time and then it wanted to fill it and drifted back into it only got halfway through it and then went up that's bullish so the rules are the less of the gap that's filled right to the point of filling the gap which is at 220 the outcome is bullish but the less that's so if it doesn't even attempt to fill the gap that's extremely bullish but if you do fill the gap then it's very often a strong signal that essentially the initial interpretation was a mistake and the market will reverse sharply so we're at the very beginning of that moment now that these big gaps can be very helpful so any steadiness from here is bullish even from a lower level it's bullish down to the point of 220 below 220 it's no longer bullish so I would suggest that the traders might use this information look at the Bay behavior next week look at it after non-form payrolls see how it's behaving but any sign of steadiness having not completely filled the gap is a bullish sign and we can extend further the MACD is holding up with we're still positive in that and the daily RSI has come down with the price action here from undoing the excessive readings many reading below 50% in such a strong uptrend is likely to indicate that we can stabilize and move on up again let's see is a strong market it's difficult to buy into a strong market but as we saw in the weekly chart we are at a very important point where any steadiness any break of the high but even before that with the gap fill action at the breaking the high of 245 would confirm it to us but we should be able to operate a little bit better than that using the gap itself and then the area but above above from 240 all the way up to 305 area is really really blue sky for the market so it could move very fast could move very fast through there watch out there's going to be action here it's off it's very difficult to join something late but this may be a moment to do that is presenting us with an opportunity but it but it depends how it behaves in this gap so watch out for meta and we still see more potential for Nvidia I will leave it here for this week thank you very much for watching we will be with you again next week it will be Julius here at the same time and the same place so it's goodbye from Julius and I at RRG research and may the trend be with you