 Hello traders at CMC Markets. Welcome to another update by RRG Research for Monday 18th of July. I'm recording this on Friday the 15th of July. My name is Trevor Neal and I'm presenting from London. Let us start with a quick look at what's going on in the major stock indices as we do each week. The relative rotation graph that you can see shows the rotation of a major group of stock indices sampled on the weekly basis and versus the MSCI world. The picture here remains basically the same as it has done over the past few weeks with many tails inside the leading quadrant offsetting the weight of the US markets within the world. So here we have the US markets over here on the more left hand side and then other markets on the right hand side. Now what we also noticed last week too was on the right hand side here many of the tails on these indices are rolling over. So losing relative momentum. So this is the JDK Rs momentum is dropping and this has developed further over this week. The rolling over is caused by causing the direction of these tails to change to a southwesterly. So rather than just falling they're now starting to head southwesterly therefore declining in our S ratio and our S momentum. The S&P index SPX and the NASDAQ alone are pointing up with increasing JDK Rs momentum. Since last week one index has moved into a new quadrant that's the UK the FTSE 100 the UK 100 and its journey has now moved from the leading quadrant into the weakening quadrant. It looks to be following the relative route of Australia 200 and it is starting to weaken quite noticeably. But you know it's got to be said that it's far to the right so in a relative basis compared to the MSCI world index and the US markets it's still performing relatively well over here quite far to the right. So for me I would not say that this would be a worry particularly it's just on a relative basis performing well but weakening slightly. So the main takeaway remains that the world markets as opposed to the US markets are in a relative uptrend compared with the US but in the near term this is curving around here and it may change in the future. So we cannot say really answer this big question whether this dominance of the world markets versus the US markets is ending or just easing slightly. So we will see in coming weeks. When we drill down to the daily RRG we see that momentum of the non-US markets is still losing relative momentum. So this trend that we see in the weekly chart is really being shown here on the daily RRG chart. The trend has continued over the last two weeks. You see that the leading quadrant is totally populated with US indices there. There's a healthy US market structure because it's all of the indices including the broadly based Russell 2000 the RTY index here is also pointing northeasterly increasing RS ratio and increasing RS momentum. And so it's a broadly based strength that we're seeing here and that is considered to be very strong. So it's a positive message for the US market. Now moving to the US dollar we want to continue with this theme here a lot going on in the currency markets. The US dollar has become the king of kings here. It's stronger than everything. Here is the US dollar and here we have the G10 currencies all to the left of it. So all underperforming the US dollar. Most in fact all of them except the Swiss franc are in the lagging quadrant. So the worst place to be really with a poor RS ratio and also poor RS momentum. So the dollar is just the undisputed king and there's no outperformance available anywhere. The euro has been hit hardest and we'll look at that in a moment to pound two but it's a euro that's been hit hardest and it's dropped through some very important technical levels. The Swiss franc continues its improvement moving into the improving quadrant but still lagging and still behind still left of the 100 level of the RS ratio. Now in this chart we've drilled down to the daily sampling of the G10 currencies versus the US dollar and we see generally this sort of southwesterly direction in the currencies which are all underperforming the US dollar in this time frame as well. And so this is a poor condition, not performing well and with the southwesterly direction that seems likely to persist. The last week the exception was the Japanese yen and here we've seen the Japanese yen now dropping down sort of vertically here. So that's a severe loss of momentum that we're having but no increase in RS ratio. And so it's basically joined the other ones which it was separate from. The Australian dollar and the New Zealand dollar here both are two currencies not headed southwesterly but they're merely stored in their position in the moving out of the lagging quadrant into the improving quadrant and it's much too early to say that they're going to swing round and offer any opportunity of outperformance of the US dollar. And the Swiss rank which had its moment there has now moved and joined the others behind the US dollar. It's still the dollar, it's king of kings. We have been focusing in recent weeks about the euro and this crucial 103 level which and we looked going back to 1995 last week and how many times this 103 level had had significance which made it so crucial. Well now it's really gone and all those bounces from 103 are behind us. We had touches back 2016, 2015, 2017 most recent ones but the further ones are going back further back than that. Now it's gone down and so it's now in a multi-decade low. It has gone down through 103 and it's broken, it's testing now parity. It's trading out parity, that magnet for it. But when we look at the technicals here it's still looking very poor indeed even when it's going here at this parity level. The RSI relative strength index is pointing down. It's very, very weak. It's pointing down because it's weak. I know it's a very low reading but it's got there because it's weak. It's not pointing up yet, it's not crossing any of the trigger lines here. It's weak and pointing weaker. Also looking at the MACD here we see the MACD line is the gap between it and its signal line is widening. It is very poor indeed. It is really looking like the fall is accelerating and it's likely to incelerate. There's more momentum on the downside. Now where is the support for the market? Well, we saw last week that we've got support at 98 which comes from 2002 and then stiffer support at 93. There isn't much to support it between here and 98 but it can still bounce from here definitely and it would meet resistance at 103. That's for sure very stiff resistance there but there is momentum on the downside there. So it's going to struggle to advance and even though we've got the psychological support level of 101.0, the parity level, this in itself may not provide the support that you would expect. I'll leave it there this week and thank you very much for watching. We'll be with you again at the same time next week in the same place. Goodbye from both Julius and myself at RRG Research and may the trend be with you.