 Hello, traders at CMC Markets. Welcome to another update by RRG Research for Monday, the 7th of November, 2022. I'm recording this on Friday, the 4th of November, 2022. My name is Trevor Neal, and I'm presenting to you today from London. Let's look at the global major stock indices versus cash. This is instrument zero return that we put in the middle here. We usually look at the MSCI World Index. So we usually look at the indices versus the benchmark of other indices. So how are each of the indices doing versus each other? But this time, we're looking at the individual indices versus cash as an alternative. We see a different picture here, of course, because we're not benching against indices in general. So what we see is a very, very interesting and very clear message. The sampling here is weekly. And we can see that every single major stock index is in the lagging quadrant. And the general direction is southwesterly. Now, westerly means with declining JDK-RS ratio. So compared to the cash. And then southerly means without positive JDK-RS momentum. So they're heading in the wrong direction, if you like. They're getting weaker versus cash. And also the momentum of that is still in place. Now, you can see also that immediately that the poor old Hang Seng is still leading the way down there. Big spaces between each of the samples here. So it's pushing ahead fast in this wrong direction, this lagging direction. The NASDAQ 2 is pointing southwesterly and heading purposefully downwards there, led by the Fang stocks. And this sort of collapse of growth versus value. Now, otherwise, you'll see that some markets have actually turned back hard on themselves. In particular, the DAX, the Dow Jones Industrial Average, the INDU, the stock, the CAC, a little bit, the Russell 2000. But not so the NASDAQ and not so the Australian market. So they're still continuing in the same direction. But last week, after lots of data and uncertainty in the market and rate rises around the world, a very eventful week, we've got a hooking around in some of the indices. So let's look at all this. So bear in mind, in more detail, we're going to go down to the daily timeframe in a second. But look at the indices which are hooking around in this southwesterly pattern. Now, as I move to the daily chart here, all of the indices now are actually in the leading quadrant. And this is the hooking around that's been going on in the weekly perspective. The Hang Seng, still sitting there alone and unloved down in the lagging quadrant. Now, looking at these, you can see the move has been blunted. And so many of them have bounced and then fallen back. So you can see this is a strong message here. But I want to look into detail of this one that is furthest to the right here. So we've got the overall message that the longer term behavior in stock indices generally and Hang Seng and NASDAQ in particular is downwards. In the shorter term, we've had a bounce. But let's look at how this bounce has been blunted, the advance has been blunted. I'm going to use for my example the one which is furthest to the right, as I said before, the one which is strongest relative to the other. Still we're using cash as the benchmark here. And let's go through and look at that in more detail. Now we have a weekly chart of the Dow Jones industrial average, the INDU. Most interesting was the drop in September, which came to a halt at this support at 2900. The support coming in from the high of the October high of 2020, then coming into a low in October 2022. The downward pattern from the high 3700 high was lower high, lower high, lower high so far, still lower high, lower low, lower low, lower low, lower low and lower low. But here on the RSI we had low, lower low, lower low, so all confirming these lower lows until we came into this low here when we broke down. But then we had a much higher low in the RSI. This was a strong warning of loss of momentum. And so we were warned that the support from October 2020 was likely to hold and break before, for the moment. The market then turned breaking 3300, also breaking the downtrend line and then forming a new uptrend line, but with resistance ahead at 33200. Now let's look more closely at this by going down to the daily chart. Now each bar here is a day. So here we can see the support down at 2900, roughly those two lows in there. But last we have the MACD. And you see at the low here, really rather well, particularly well, that we had the crossover of the MACD through its signal line, giving us a bias signal, which has held true into now. A little bit of blunting of it here now, but it is at a wide point. So we came down, we broke the downtrend line at 30,000, as I said before, and then we've got resistance now at 33200, we'll say the resistances. And we've got a tentative uptrend line. I put this as dash because it isn't really properly formed yet. The third point is the current bar. We have lifted off it and we have a shadow below. But the RSI here, we see the support at 2900, the two lows in there and the higher lows just now. What does all this add up to? The index, which was furthest the right of all the indices in the weekly RRG chart, which were performing weekly. This one has led the balance. If the Indu can break up through 33,150 or 33,200, it can challenge the 3400 high. Through there, the indices will have turned and it will have been led, they will have been led by the strongest as shown on the RRG chart, the Dow Jones Industrial Average, the Indu. However, if this hook that we've seen in the daily RRG and the stall that we've seen at 3300, looking at the RSI turning down here now and so far that a part of this week easing off here, this may mean that the rally has finished. And we are generally at the start of a resumption of the longer term downtrend that we've seen in all the indices in the RRG chart, particularly the weekly chart. A move lower in the indices will very likely be led by the NASDAQ and of course the poor old lonely Hansing with the Dow Jones Industrial Average likely to be a reluctant participant in the fall. So it's a crucial point here. The breaking of 3300 is crucial. We may have already failed. So we may start the week with weakness. And if we do, then the downtrend that we've seen in the market is resuming. This will be a laggard, slightly a laggard and we know the familiar faces that will need to move down. However, if we can continue this advance and resume our composure next week, then the key levels are clear to us 33,234,000, just above 34,000 and the picture will change dramatically. And the leader of the bull market, should it develop will likely be the Dow Jones Industrial Average. I'll leave it there for this week. I thank you very much for watching. We, one of us, Julius or I will be back with you again next week at the same place. Goodbye from Julius and I of RRG Research and may the trend be with you.