 Hello, traders at CMC Markets. Welcome to a fresh update by RRG Research for Monday, the 14th of November. And I am recording it on Friday morning, the 11th, just before the market opens. My name is Julius de Campanara and I am presenting to you from Amsterdam in the Netherlands. Let's start this overview, this update with a look at the rotations for world indexes, world indices. And that image remains, well, there are some changes, but the big moves and especially the one from Hong Kong that continues to move south further into the lagging quadrant. So that is still that remains the weakest market in this universe, in this group of indexes. And what we also see is that the American NASDAQ index, the NDX is following suit into that lagging quadrant. Make sure you're going to blow this up a little bit because we know that Hong Kong is down in the south. And then you can see that rotation by the NASDAQ further into lagging. You can also see that the S&P, we're comparing this to the MSCR world index. And obviously, the US market and the S&P is a very big chunk of the MSCR world. So what you will usually see is that the S&P or American markets in general are remaining very close to the benchmark because they are a big part of the benchmark. But the heading of that tail is negative. It's losing on both scales on this weekly charts. And what you, the big picture that you see here is that especially the European indexes like the DAX and the stocks and the CAC, they are moving into that north eastern direction. And that is a good sign. So reading from this chart, I sort of immediately gauge that Europe is outperforming, is doing better than the US. Especially if you look at the NASDAQ and the S&P and then the Dow Jones industrials is kind of the exception because that's going the other way, which you can make the story here that the Dow Jones 30 are obviously the 30 biggest stocks in America so that that bigger segment is doing really well. And the broader markets and especially the NASDAQ is not really a technology sector, but it's very tech driven are doing not so well. So that's the big image that you get from this weekly picture, from this weekly ROG. If we zoom that into the daily, we got a bit of a change going on. And as I'm recording this, you can see that the last observations are making quite, you know, sharp hooks. And that is always a difficult situation because you need a little bit more information. You need a few more observations, a few more days of trading to be able to tell whether that is really a change of direction for those tails or just a little blip. Sometimes they give these little blips. But if we if we take it as it comes right now, you can see that the ones that were doing not so well. So the NASDAQ has picked up here, the S&P, you can see that that last observation just picked up. And you can also see that the Dow, which was doing very well on the weekly has just hooked around. You can see that the DAX is doing that the stocks is doing the same. You can see if I blow that up here that they last day is really weak compared to what's going on in the US. So when we move to the individual charts, I want to focus on the S&P and the stock 600, basically to take a look at what's going on between the relationship between the US and Europe. So if we start with that weekly chart for the S&P 500, I think that it's very clear that we're still in that downtrend. If you look at price, then we've got clear lower highs and clear lower lows that that signals a downtrend. That is a downtrend. We're currently moving up within the boundaries of that falling trend. And as you can see, there's still quite some room to move. If you look at the relative strength, the ROG lines versus the MSCR World Index, you can see that the S&P is still above. So it's still in the long term, still outperforming the world. And it's on the right hand side of that ROG plot. But the line is coming down. Both lines are coming down, which means that it is at a negative heading. That's what you saw on that weekly ROG. Now I'm going to jump to the weekly for the stocks. I'm going to skip the daily for a moment. I'm going to move to the weekly chart for the stocks. And what you can see here is that the comparable downtrend that we have seen in the S&P 500 in the stock 600 is getting broken. It's on the way of getting broken. That is clearly a benefit plus for stocks over the S&P. So a benefit for Europe over America. And you can see that back in the ROG lines. You saw that the ROG lines on the S&P, they were moving lower. And you can see that the ROG lines here on the European Stocks Index, they're moving higher. So that's the opposite direction. That indicates that Europe is getting stronger than America. And if we now move to the daily version of those charts, and we have the S&P daily chart here, and you can see that that improvement is definitely there. You can see this little hook here. That is what causing the tip of that tail on the ROG to hook back up. And on the price chart, you see that the S&P is taking out that 3,900 level. That is a good sign. However, there is overhead resistance waiting already around 4,100. So there is definitely some upside, but we need to take into account that we're still in that longer term downtrend which could keep the rally 40 S&P under wraps. Now, if we bring that to the European version of the Stocks 600, we already saw that on the weekly we're breaking that downtrend. And you can see here on the daily that we're pushing against this peak here. That's acting as resistance. Now, this is only up to yesterday's close. So it's a little bit dangerous to call this a break because it's very well possible that market just opens today and we're going to move lower and not get the real break that we are expecting. But it is a good sign. And you can see that the ROG lines here are moving up with that little tip moving around and hooking back down. So if I bring that all together, then I think that we need to conclude that on the daily, Europe is running into resistance with relative strength just rolling over while the S&P is breaking it and hooking back up. So in the near term, it looks as if the S&P has got a little bit more upside potential than Europe. If we move to the weekly, the picture is the other way around. Here you can see that Europe is picking up relative strength and breaking that downtrend while the S&P is still in that downtrend and losing relative strength. So if I sum this up, long-term Europe over the S&P, short-term the S&P over Europe, you can decide whatever you need to do depending on your timeframe and your investment horizon. There's one more thing that I want to share with you this week and that's the ROG for forex because the Euro dollar came to life. And if we look at the ROG here, this is a weekly ROG, it's looking at weekly trends in currencies. Because everything is on the left-hand side of the graph, it basically means strength for the US dollar. That's what we've seen. We've seen that the US dollar got stronger and stronger and stronger over months already. Now these tails here are turning back up. So they're moving generally in a positive ROG heading. They're all pointing to that northeastern direction, pretty much led by the Euro here. So that indicates that the dollar is getting a bit weaker. It's still long-term very strong because this is the US dollar, it's on the right-hand side. But in the near term, the other currencies, especially the Euro, are picking up strength. And if we look at the price chart of Euro dollar, that's very interesting because the chart that I keep looking at is the monthly chart for Euro dollar. Because obviously we had that break of that massive support level around 104 and that was back in May, June. And now we dipped all the way back to 0.95, which is coincidentally the peak that is below this bottom formation here in 2000. And we're bouncing off that old resistance, which is now support. And I'm looking for Euro dollar to move up to that 104. That's where the real yeast is. That's where Euro dollar can actually prove what the main direction of that currency pair is. So long-term, that signal, that weak signal of breaking below 104 is definitely in play. Right now we're bouncing off old support back to that 104, which is now going to act as resistance. And if you look at the Euro dollar daily chart, then you can see that in more detail. You can see that that long downtrend that we had for a couple of months is now broken. We are seeing higher highs and higher lows emerging out of that bottom formation. And we're running into the first resistance right now as we speak around 102. But I think as we saw on that monthly chart that there is upside potential towards 104. Depending on where that new peak comes and how Euro dollar is going to behave if it reaches 104, we'll tell us a lot more about the longer-term direction of the Euro dollar exchange rate. For the near-term, I think it's going higher. For the long-term, I'm still not very convinced. I think that there is still more downside to come. Thank you for watching and I'm hoping to see you again next week at a new update by RRG Research. Same time, same place.