 Good morning traders at CMC markets. This is Trevor Neal, research director at RRG Research BV and I'm making this short recording looking at the short term implications in the charts at the moment on the morning of Wednesday the 24th. So before the European markets open and after the US markets have closed. This morning we're going to look at the stock markets in the US and in Europe and we're going to do so with the high degree of tension in video results due out and high expectations for that, positive expectations and also we're waiting for news from Jackson Hole. Now firstly the Nasdaq 100. Moving down here with a series of high, low high, low high, low high, low high, low high. Now it is also a lower high. The downtrend line you know it's a tricky line here. I'm not too confident that it's drawn precisely but it was broken momentarily and we pushed through support which became resistance for 15,000 really in the market but we had a big reversal hour here. So we had a strong opening yesterday and then spent most of the day drifting away after that. Not a good sign really, hitting resistance and then with some power after a good run-up since the 18th and then drifting away in the way it has now. It has rallied around 61.8% of the fall from the high of the 15th down to the low of the 18th and rallied then yesterday we had the strong opening and we've drifted away so at a 61.8%. Now that's quite a powerful jump in a bear market bigger than you would expect but we have started to drift. The other support levels we've got are really nothing down until we get down to 14,500 so it's pretty vulnerable on the downside. If it breaks up and we're waiting for some news developments 15,038 would be confirmation the breakup and then 15,200 would be the next level but it does look as though it's turned down here and weakening. So if you're inclined to follow the trend and I think if we see break of these lows here at 14,850 then we're probably heading at least back down to the lows here at 14,500 and we would know we were wrong we could protect ourselves above this high here of 15,000 just above 15,000 I placed the order I would void the round number if you were doing this and 15,050 would be a good sort of logical number not the high itself because that's the resistance point but you want to choose a level which is above it. How far above it is up to you but I think that if we clear that and it was only momentary then we are going up. Getting bearish on continuation of the drifting behavior that we've got now protecting above the the opening high of yesterday looking at the MACD narrowing up still bullish but narrowing up here to have maybe turning down but hasn't done yet but it is of course a lagging indicator we can go down quite a bit before it does cross over. The RSI however has topped out and it's come down quite hard and the stochastic gave a sell right at the high right at the opening of yesterday and if you're a stochastic follower you'd already be short at a higher level than we are now at the moment still traveling lower and the gap is still widening so it supports the premise. The S&P2 has had a big downtrend with lower highs high low high low high low high low the rally that we had from the 18th has been 50% then we had the reversal candle there as we did on the NASDAQ strong opening and then failure here now this wasn't at the resistance it was just at the 50% level. This is a bad development in a downtrend that a rally may be complete so we have resistance of course at the high of yesterday at 4,420 we'll call it and then the next resistance above if that were to break would be 4,450. We drifted since then there is support at 4,360 and the low on the 18th was a 4,334. The MACD is narrowing hasn't crossed over this point the RSI is moving down through the 50% it's weak the stochastic has given a sell actually in the beginning of yesterday first hour of yesterday on that black candle and is selling off hard it's coming off hard at the moment. So this could be a resumption of the long-term downtrend and those that want to participate in that might well be sellers right at this moment with protection above 4,420 looking for a break of the 4,335 low and aware of the 4,360 support there. So note that this rally is 50% the Dow Jones industrial average it's got a different pattern hasn't it has got this long downtrend with lower highs in place we have three tops basically in in place at 35,650, 1,2 and that one nearly it the MACD is crossed down at that point and it's going down it's not going up and moving closer it's actually going down we when the markets are rally quite strongly on the 18th the the the Dow did not participate in that had just just paused really and came to you know so I had percentage terms compared to the 61.8% of the NASDAQ 50% of the and the S&P this one did nothing it maybe 20% of maximum something like that and it broke down through the previous resistance point of 34,580 this then became a resistance point on the rally and then we've drifted again here now the indicators here the RSI very weak indeed and the stochastic also weak and crossing down again here at a low reading crossing down to a low reading is a sign of weakness in a market so of the three and the NASDAQ the S&P and the Dow the Dow is the weakest one of the three so you know if this market is legging down again and the rally is complete and the news comes out rather poorly then this will be a pivot point and then turn back in the direction of the trend but of the three go with the one I would suggest you go with the one which is weakest of the three which is the Dow Jones industrial average the NASDAQ is still pretty strong and the S&P is still fairly strong in a longer term perspective but this the the Dow Jones is a very reluctant participant in the rally that we've just had and so it will be the first and the most enthusiastic to sell off again if the sell-off continues so here your protection point is also as a percentage of the reward potentially for this one you would have your protection above 34,600 and we could look easily and even more than this down to 33,600 so that's a good three to one reward risk ratio now the FTSE 100 is you know is not looking but as bad as you might think it definitely has come down but it broke the downtrend line it rallied came back to 7,250 then rallied to the same point pull back again and has pushed up this one looks like it is maybe turning and if it is turning as it opens here then I think that we could be easily back up towards 7,400 level here so there's not a lot to stop it in terms of resistance here the MACD is positive on it the RSI has jumped and broken through the end of the tiny bearish divergence we had between these two highs high same high high low high but that's been broken there so that's positive and then the same can be said also of the stochastic we had a lower high in place here with the same high it's not a strong signal bearish signal as the proper full blooded bearish divergence with a price high higher high and indicator high and lower high no it's not bad but it we it's been broken anyway and so I would take that line off now because it's now looking like support and we've actually got a higher lows pattern here so this one though it's you know the markets in Europe have been weak and the footsie particularly weak this one looks as though it might be starting a bit of a bounce and the bounce would be probably uninterrupted and relatively frictionless up to that 4,340 level and then finally the DAX now the DAX has had a bigger rally than the footsie since the low of the 18th and but it has come up to resistance from the round about the 15th at 15,800 and turned down hard yesterday this is taking the MACD back close to its signal line it's closer to making a crossover we have got support of 15,590 and then the low here at 15,470 so we're turning down from resistance the MACD is officially bullish but it is closing in fast on its signal line the RSI has turned down and the slow stochastic has given two highs in place here high is it high lower high is it a bearish divergence I think it is just about but it's given a sell signal yesterday and the gap is widening here so again this is a looks as though the trend is resuming however the overall trend is not so strong this is the one I least like the look of selling I thank you all very much indeed for joining me today I'm signing off now I wish you a great day it's a Trevor Neil research director RGU research may the trend be with you