 Hello traders at CMC Markets. Welcome to another update short-term update from ROG Research. I'm recording this on Tuesday the 29th of August for publication on the 30th of August. My name is Trevor Neal and I'm recording this in London. Today we're going to look at stock indices again, look at the NASDAQ, the S&P, the DAO and we'll also look at the DAX and the FTSE as follow-up from the last session. Now the best place to start of course with is with a relative rotation graph. This is a daily ROG of major stock indices versus in the crosshair here the MSCI world. So if you like this is the how the major stock indices are doing versus the average of major stock indices. So having on the right of 100 here is in a relative uptrend compared to the MSCI world and having to the left is not in a relative uptrend. And don't forget you know if stock markets generally are going down and you have things on the right they may be going down as well but less than the benchmark and the things on the left and that gives them our performance. So we're not looking at the absolute performance in this case if we were looking at cash and that would be the case but here we're looking at them versus each other. Now there is something which is very clear when we look at this. There's only one index which is not heading southerly or westerly. So southerly means with declining momentum, relative momentum, westerly means declining ratio versus the MSCI world. So even these ones here like the Dow Jones is coming around with quite a long tail and moving from the leading quadrant to the weakening quadrant swinging around there. But on its own we've got the NASDAQ and the NASDAQ is pointing northeasterly not a long tail but it is northeasterly probably in the next day or two it will cross over that hundred line and join those in the leading quadrant which may have moved into the weakening quadrant. So we've got the European stock indices here, we've got the S&P here, we've got the Dow here, we've got the Russell right over here, the poor old foosie down in here still, the nobody's friend and the other European stock indices are up in the leading quadrant at the moment. Now when I last spoke and we were talking about the short term it was the day NVIDIA gave us tremendous results and there was the performance there. I was looking for a sell opportunity waiting for the NVIDIA results that came out better than people had hoped and it was marked up by the end of the session. I said if we get weakness it had sold off really hard and we sold off and down to the downtrend line here which was is a support level you know when you break a downtrend line break up through it then when you touch it from the other side where it was resistance it becomes important. This was rather perfect actually one for your album look at this one two three break retest big bounce on the NVIDIA results total collapse but stopping here at 14,700 and bouncing strongly from there. Below you can see we've got the MACD it's blasting up the MACD is separating from its signal line this tells us we have got strong momentum in the market and it's approaching minor resistance I would say it's minor resistance even by the time you read this we may be through this 15,360 the next minor resistance at 15,526 and then the next major resistance is at 15,700 it's probably 15,800 really is where the major resistance is so we've got strong intermediate long-term measurement here the RSI is very strong indeed as well big powerful push to a very high reading at the moment looking over very slightly there if it were to come down I think that it would settle at this support point here 15,200 and and compose itself and move on up this one looks bullish but the question is you know is it is very hard to participate into the strengths you know when we were looking the last time about getting short of it and we could use the weakness as an entry and the high as a protective level but this is not the case here so we'll come back to this again we have a similar picture here on the alley chart of the S&P here's the video results here as is the weakness it didn't actually move that as strongly as the Nasdaq did and reverse sharply came down to perfectly to support at 4,360 and held there and reverse very sharply now it's gone through the Nvidia high if I call it that at 4,450 and to the next resistance level which is a minus resistance level which is the level we're at 4,490 as we speak the the MACD is positive and the gap is widening the RSI is pushing up and just looking very slightly at this very high reading very strong reading here so we're on we could be ready to burst through for another leg up to 4,520 and just above it we've got resistance not strong at 4,540 but the real sort of magnet is the 4,600 high from July so again looking good here lots of momentum it's positive it's high it's vulnerable but even if it has a pullback again I think that this would be supported at 4,450 and then advance more we're looking at the Dow chart Dow Jones industrial average hourly chart and you see this has really not got the vigor of the Nasdaq and the S&P it came down it was supported at not one of the chart levels but it was supported at 34,080 bounce took out this high here this high here these highs in here at 34,500 and it's pushing forward now look at the MACD here very different from what we've seen before where they were strong and up here and the gap widening here it's just cross early stages in here also the RSI it's not up here and hooking down no quite the opposite is pushing up rather strongly so this may well present an opportunity although it's not a great looking picture on the RRG chart from a point of view of trying to construct a plan and for your strategy this one might be present better opportunity I'll come back to it in the end the DAX is moving forward it was my least favorite when we spoke when I spoke last it's the MACD here very positive indeed we have broken a minor resistance level at 15,800 pushed through a minor resistance of 15,890 and then the next resistance level which isn't strong resistance level is at 16,000 then we would be targeting 16,500 the top the previous top the RSI is a strong steady but not excessive so this is also got some attractions on the upside and there could be something here where there was protection just below this low but I'll come back to that in a moment after the close on Tuesday let's have a look at which of these presents the best trading opportunity maybe not the best investment but the best trading opportunity currently starting with the NASDAQ we know from the RRG graph that this one is the one that best offers the best investment opportunity it is the one the only one in the major indexes which is heading in a northeasterly direction not a southwestly direction like everything else compared to the MSCI world so where did we end we ended at precisely at the resistance level of 15,360 just losing a little bit of momentum there at the end of the day now it if this loss of momentum is nothing more than profit-taking the end of the day and then we could have an opportunity of a dip and if the dip were to extend back to what I'm calling them the Nvidia high 15,268 and hold and start to turn up again then we have an opportunity here but not now this market is shot ahead really you should belong intermediate-term swing traders should belong in here we've now got from after the long term this downtrend line here the trend has reversed now we have an ABC movement in progress here possibly taking us soon to the high up at just below 15,800 so it's that's looking the strongest but at the moment it doesn't give us a good setup for a trade the S&P really very much the same here though we haven't got loss of momentum at the end of the session we had increasing momentum at the end of the session indicating that we will tackle these levels which aren't in themselves very strong resistance level 4,522 and 4,536 and the it's got its eye on the high 4,600 there it's on its way it's got momentum it's very sensitive stochastic oscillator is still pointing up here and this one of the two is less likely to have a little bit of initial pullback but even the Nasdaq it doesn't look as though there'll be much pullback opportunity you should be ready long from in here once it dipped and fail to make a new low continuing the downward passion pattern and then turning up so ideally belong really around here now a different picture and tidy here we yes we were in the mid we're a mid move here and so it's got more power behind it but we're close to support here so there's possible that we're going to get a trade trade opportunity here if we have any beat weakness it should be well supported 34,600 that is some resistance substantial resistance whereas before in the Nasdaq and the S&P the resistances were light here they're quite heavy from 35,600 sorry the the resistance starting at 35,000 so if we pull back it should be supported here but it is possible given the high level of momentum that it's not going to pull back so this is not ideal you should already be long of this now let's move to the footsie now the footsie was the one that we were bullish off previously and so you may well be long of it already and the great thing is that we've pushed through the the previous support level now resistance level 7,400 that opens up for an attack on the high here at 7,600 now this one has had an little interruption and so we could if we get a steady opening today which we probably will and then then this would indicate a can follow through on this and then we've got a pretty obvious pace for a stop protective order which would be below the support here and I would say below that hourly bar there so something like 7,418 there for protection and that gives you a very nice probably four to one risk-reward ratio up to the resistance at this high which isn't actually that strong so this is of what the opportunities the plans to make at the moment my favorite we should cover the DAX the DAX is my second favorite and so we've got higher lows in place here we're pushing forward and resistance is getting lighter as we go up and then we've got a resistance at 16,063 but if that breaks and that resistance is not strong it makes it gives a clear run from due to the rapid fall from 16,500 there so potentially this could be more near the beginning of a move and the others and so any you know brave the brave might be getting long looking to enter around current levels with a stop loss either below this line or ideally here so it but below this low here the 15,800 so 15,792 would be the sort of order I would place in here and that would give you that risk and you'd be then looking for the high but for a shorter term move then I think again if you were long here you place the protective stop below the support line here now it's now support line at 15,882 looking for an attack on this which may well give way relatively easy easily because it's not a strong resistance so my two preferences although not on the RRG chart are the footsie and the DAX and for an investment of course it still remains the NASDAQ I thank you all very much indeed for listening this has been Trevor Neal of RRG research I wish you a great day may the trend be with you