 Hello traders at CMC Markets, welcome to a short update on markets by R&G Research. My name is Julius de Kampenaar and I am presenting to you from Amsterdam in the Netherlands. We're going to take a very quick look at the very near-term developments in a few stock market indexes in the chess. Let's start with the, by the way, I'm recording this after the close of the US markets. So in between market opening tomorrow morning for Europe. Starting with the NASDAQ, it started off as looking like a good day but towards the end of the session we actually got a pretty nasty decline and that's visible on this daily chart as well. If I zoom it in a little bit you can see this last candle here which closed towards the low of the session today and that is not a super good sign in my opinion. You can see that we tried to take out that previous high here of the 22nd, didn't manage, moved to the lower end and we're at risk of forming a very short-term double top here. If you look at the RSI and the MACD and I need to zoom out a little bit, you can see here that the RSI is showing what we call a negative divergence that's a sort of a warning signal that at least a pause but possibly a slight turnaround decline is on the horizon. So from this perspective I think that the upside potential for the NASDAQ 100 in a very near-term is going to be very very limited at the moment because of that divergence and the fact that the MACD is about to roll over. So what can we expect? I think that the level that you see here, so the low was 15.90.21, say 15.90.20, if we take that out tomorrow early in the session we're at risk for a further decline towards the first support level which is around 15.7.20 and that's actually the gap area that occurred between the 13th and the 14th, this area here. This is a pretty decent support area, at least for the near-term. So the lower-term picture is still pretty good but in the near-term I expect the NASDAQ to see some form of consolidation, maybe even decline with the gap area here, the higher end of the gap and the lower end of the gap as important support levels. We go take a look at the hourly chart and you can see this a little bit more detail and the RSI doesn't really tell me much because it's right in the middle of 30 and 70 so that's kind of neutral and you can see the same here on this hourly chart over the last week that we kind of stuck between two barriers. So the extremes here, that's around 16.120 and the lower boundary here is around 15.9.30. Obviously as I said coming from the daily chart there is a little bit more risk so I would be focusing on downside price action also when you see that intraday, so this is today's price action or yesterday when you see this, we actually started a series of lower highs and lower lows so the previous low intraday low was taken out here which probably opens up the way for a decline towards that 16.9.30 area to begin with. If you look at the MACD that's actually in a you know falling trends for like two weeks already almost. So outlook for the NASDAQ not too positive, near term very likely some decline, some price depreciation before we can start looking at the upside again. If we take a look at the Dow Jones index also starting at the daily chart and we can see that it is running into resistance and what I'm watching here is the peak that was set in the summer end of July starting of August and the level is 356, let's say 356.70. That's a pretty serious resistance level. If you look at how that the last bit of that rally went and you can see that over the last say 10 days we had a steady move higher but the RSI didn't really move higher it stayed in that overbought area moving sideways so it's it's not pointing down so it's not really a negative divergence but I kind of want to call it a semi divergence there is pressure on the market that's for sure and when you look at the MACD you see that it is in the same area of level wise as where the previous high was set and it's it looks as if it's starting to roll over you can see that the difference between those two lines is already rolling over so there's definitely overhat resistance for the Dow Jones index as well. If you look at a potential target I would say 35k 35,000 is a very good level to watch you can see how that was a low in that topping formation in the summer and then it acted as resistance twice and then actually not too long ago 1, 2, 3 days pressure against 35 before it broke so that old resistance is now very likely to come back as support upside potential for the time being limited to 356 30356 what is that 35660 let's call it like that if we look at the hourly chart and you can see that very nice steady move higher that we saw over the last few weeks I have to say it's a very narrow range and you can see here that there is a divergence building up you can see those two highs were higher what's also kind of a sign of weakness is that these highs the last highs were not able to touch the upper boundary of that channel so it was like one two three four five whatever you want to call it the very reliable rising support line and the last part of that trend didn't reach the upper boundary of that channel which means that sellers were coming in at an earlier level if you look at the RSI you can see that those two peaks were set at the same level while the price was going higher that's a negative divergence and it looks as if at the end of the session yesterday the market actually took out that rising support line opening up the way for at least a temporary decline the MACD is showing you the same picture also pointing to lower prices we go to Europe to European markets so here's the the footsie the footsie 100 obviously that will very likely take an effect take spilling over from the close of the US market so that I'm going to take into effect the the weakness that we saw towards the close of the UK markets spilling over into Europe when we open this morning and looking at the price chart of the footsie you can see that it has been trading in a pretty wide trading range for one two three four like half a year already and then last two days we broke out of an upward move a series of higher highs and higher lows that trend's now broken the the session in the UK didn't end too well yesterday either and you can see the the RSI is kind of neutral there's not much saying but the MACD is rolling over very close to the zero level pointing to some negative price action looking at this chart here I think we can conclude that the upside potential for the footsie is limited and that the risk is definitely there pointing to the level of so there's a support area here between these two red lines that is 7,220 and this is around let's say 7,290 those are the the support levels that I'd be watching and if we make this slightly longer chart then you can see how nice that trading range is we're probably not going to make it any higher so I'm going to expect a setback for the footsie toward that range as I just mentioned so either the upper boundary or the lower boundary you can see that there are quite a few touch points on the lower end as well for that for that support area so negative price action from the US spilling over into the UK very likely going to point the footsie lower at the start of the session today I have to say if we do that on an hourly chart you can see it in a little bit more detail but you can also see how very nicely that market has been behaving between upper and lower boundaries in a trading range this is a slightly shorter trading range than the one that we would just been looking but it's quite interesting to see how the footsie is respecting these horizontal levels very very well yesterday we kind of played around with the 7,460 area 7,460 7,450 that's the resistance level I'm watching so that means that the upside potential is also limited here and the trigger for the downside as I just pointed out on that daily chart will very likely accelerate when we take out this low here which is 7,408 let's say 7,405 just to be sure is the previous low if we take that out that'll probably open up the way for quite a bit more downside and that could bring us back to levels that we've seen at the start of the month which is just above 7,300 I hope you agree with me that this series of lower highs especially the lower highs what means that the sellers are pretty aggressive they're coming in at lower levels they're willing to accept lower prices for the stock that they're selling and the buyers so far have managed to to hold it around this support area but when that breaks and sellers become more aggressive we will see a little bit more downside and then we're going to wrap it up with the german dex index actually probably well from the fore that we're talking about today the strongest market so at the end of the session you saw that the dex actually broke higher which is a good thing interesting by the way big difference between the footsie and the dex but what's not not super worrying but you can see how the rsi is at very high levels so the upside potential for the dex if it can hold this this rally will be the level of the highs that were set in the summer so this is june and this is july and the level is 16 440 let's say 1600 around that area doesn't you know I don't I don't care about 10 points in the dex the good news for the dex is that it broke this resistance area which is now expected to come back as support and that is the area around and the high here is 16 40 16,040 16,040 16,050 that is expected to act as support the real trigger for downside movement in my opinion is when we take out this previous low here and that low is around 15 9 15 15 9 15 that's the low of two days ago the low of the 28th of november when the dex breaks that level we're in for a decline back towards the 15 500 but for the time being the dex looks to be the strongest of those four markets with that break towards the end of the session I'm going to take a little bit of the glamour away by looking at that hourly chart because here you can see how it started that rally right at the beginning of the session and then slightly edged higher towards the end but the rsi here you see is building up some sort of a diverges didn't really manage to keep up and towards the end it's really coming down so nevertheless the the view that the dex is the strongest of those markets still stands but with the weakness of the US market spilling over into Europe if we take out if we get out of this small rising channel I think that the first target for the dex will be 16,040 if we hold there there is new upside potential if that gives way the scenario that I just pointed out on the daily chart will get into play I wish you a very good training session this wraps it up for this short video by RRG research and I'm looking forward to seeing you again at a new video very very soon