 Hello traders at CMC Markets. This is my update for Tridy, the 17th of November. I am Trevor Neal of RRG. Today we're going to look at global stock indices and there's a very striking pattern on that. We're going to choose an index and an index pair that we like very much, in particular like very much. Then I'm going to come down to four stocks which I like very much and two. One in particular is a pullback opportunity and the other is a really rampant strong stock. So let's get going. We start with a look at the relative rotation graphs of major world indices versus the MSCI world itself. It's a bit of a all-over-the-place picture and all sorts of directions but easterly or westerly or heading southerly. So it's a very mixed picture. But on the right hand side of the 100 level, so on a relative basis outperforming the MSCI world we've got the Dow, the S&P, the NASDAQ and the FANG. So we've got all the US indices on the right hand side. Also the Nifty, the Pussy and the Nikkei. Then on the left hand side here we've got all the other European stock indices plus the Australian and the world hang saying there. The picture though becomes very interesting indeed when we drop down from a weekly sampling to a daily sampling. Here we've got in the shorter term picture a very strong message from this. Can you see that we've got indices heading northeasterly with long tails and indices heading southwesterly with long tails. We've got here the FANG, the NASDAQ, we've got the S&P all heading in the strong direction here. The FANG the strongest of all, the biggest tail of all and the NASDAQ too. The Dow still okay in that it is outperforming but the direction of it is southwesterly. That's the wrong direction. In each joins what have we got here? Stocks, DAX, CAG and the Pussy and the Pussy really in the furthest to the left here. So the greatest relative underperformance. It's just really just not moving while everything else is moving up hang sayings and definitely in a downtrend. But we've got Europe here a little bit stubborn and going the wrong way on a relative basis. So it's got we've got a clear message here US markets in particular the tech stocks the FANG stocks and the NASDAQ versus you could do a pairs trade versus European indices in particular the Pussy. So the best would be one of the FANG constituents versus the Pussy or the NASDAQ versus the Pussy. It's a very strong message indeed. You don't really see it very often like that. So much of a kind of straight line with a clear message of US stocks northeasterly European stocks southwesterly. The long America in particular the indices the short or out of the European stocks in particular the Pussy. Starting with the NASDAQ you can see JDK ratio and momentum are both soaring here. It's very strong indeed. And in fact it's very close to its July high at 15,000. It was and we're as I record this we're testing that high now but a big gap as we broke that previous high resistance and we're surging up very strongly indeed. We can see this in the MACD gap widening here. It's got momentum. It should break this high the July high with relative ease and then we've been looking up 16,700 high to be tested after that and with good support below. On the RSI we've got it's very strong pointing upwards still strong momentum on the upside. Yes this should break and should push on further. Traders might go long for the break with a protected stop and at an attempt to fill the gap. The gap is from 15,746 to 15,575 but really I would take this level as the other side of the gap 15,602 and that could be your protective area for a swing towards the high. Moving to the S&P you can see here that the ROG lines the momentum and ratio both pointing up very strongly here as the market soars. It had drifted back in a pretty parallel shape a flag shape here but it's broken up from that flag and returned to the long-term uptrend. It is facing resistance just ahead as I record this 4,533 and then if that breaks which given the momentum which I'll show in a second it probably will we could be going up to 4,603 high there from July. The MACD we like very much the gap is widening here it's between them and they're both pointing out very strongly and the RSI making new high and pointing up to this should break that this latest nearby resistance and given the amount of momentum and increasing rate of change of speed on the upside it should be ready to take out the 4,600 top as well. In contrast look at the footsie it's got a series of lower highs in place here it's turning around in a range around the 7,500 level there's plenty of resistance above 7,700 7,750 and then here 7,300 and very significant three bottoms here at 7,200 but it's looking really poor it's just stuck in a range and this inability to do anything up or down has made it the worst performer against other stock markets yes the other European stock markets have improved a bit but this just won't move and compared as we saw in the ROG chart to the soaring American indices this is is an anchor a drag to global stock markets. We saw the position of the Nikkei on our graph up in the right-hand side top right-hand side and look at this here now it's we've had a series of lower highs high lower high lower high and we're tackling that right now it is pushing ahead very strong indeed here we can see the RS ratio is soaring ahead but beware a little bit of loss of momentum here momentum proceeds price and so that's a little bit of a warning here but otherwise we've got brilliant looking MACD with the gap widening them momentum increasing and the RSI are pretty strong as well so provided we don't falter right here then I think where this is a breakout it's not quite a flag but it's a flag shape and we've got a flag pole here so the potential is substantial on the upside if we are clearing this the only fine the argument is that relative rotation JDK momentum is turning over a little bit so stalling a little bit but that's natural when you're at a resistance point but as I write some of the fan plus stocks are having sharp reversals at resistance points so let's have a look at that and see where the prospects the best prospects are in this sector which is the this area this group of stocks which is the driver of the stock market upwards but let's beware of ones which are approaching heavy resistance areas now let's quickly go through the charts of the main fan plus stocks and we're starting with NVIDIA and NVIDIA has hit the resistance at 501 500 the round number and it has backed off quite sharply at that resistance point it's looking good from an ROG point of view but and just a slight narrowing in the MACD lines here but the RSI has come down topped out maybe one of these tops like we've seen before is in place if we do come off then I would expect support to come in at here at 3 at 4 7 6 we just draw that in there which is probably going to present a very good by opportunity but at this moment it's suffering from resistance moving on to Tesla now Tesla is really ranging and it's mid-range 200 to 270 to 80 area and it is also a little bit weak at this very moment in time and but overall it's looking strong but this has got lots of resistance ahead of it particularly intense from 240 up to 280 so that's not such a good opportunity now Netflix I like that Netflix has broken through 450 it's powering ahead look at the MACD here gap widening here very strong indeed and then it looks as though it's getting ready to go to the 480 high and I just want to bring this in here that 480 high is a significant support level resistance level from going back into 2000 now Amazon too has been rebuffed with big bearish engulfing line candle here at significant historic resistance the gap between the MACD lines is studied to narrow quite sharply and the RSI has curved down come down through 65 from above but I think this again possibly is ready to come back down to support from this high here which is at 134 I do expect that will from possibly drift back to there and then stabilise there and start to up again then Google Google's going ahead strongly towards resistance it hasn't stalled at all compared to the other ones okay the other ones of having those big things like bearish engulfing patterns but not here it's a soaring away the MACD gap is widening it's really looking good now Microsoft this is looking great is it making a new high it's broken the high of July at 366 bursting forward looking great on the MACD look at that gap widening that wide gap widening there on the RG lines look at that amazing relative strength there and then the RSI also little slight loss of momentum in here but it's still holding up very well we could expect some slowing up of this sort of meteoric rise if it comes back then it 366 is probably where it's going to hold meta made the break out of these two highs here at 326 surged the head gapped up but then has had that big reversal outside day or bearish engulfing line and it's on its way back to support and the support is at the breakpoint 326 and it should be well supported there and present an opportunity ahead so the the MACD is looking good and the RSI has come down as you would expect not yet quite broken through 65 which for me is a key level but it I would not be surprised to see this stabilise around the current levels and then for another attempt to break through the high at 33 and finally Apple Apple has surged from the below at the end of last month and has come up to resistance and at this very moment has got a kind of an iffy candle yes I guess these candle to had rejection in it on the RG lines we have got some loss of momentum here at this resistance point so that indicates we may stop here or even reverse at this point and find it hard to pass right through this round number of 190 the next level do get through that we will have good support and then it would indicate we were heading to 198 the MACD lines here they look great RSI it's also still looks great but we have to watch the behaviour here and the with the little bit of evidence we've got it does look as though it might stall here I think you all very much indeed for this thing it's always an honour that you do my name is Trevor Neal of ROG research have a great day and may the train be with you bye bye