 Hello traders from CMC Markets. This is Trevor Neal with the latest update from RRG Research. I'm recording this on the evening of 12th of Monday 12th of June. In this session we're going to look at the current state of the US stock indices and look at the charts of them and also a quick rundown on the foreign exchange market. In front of this very busy week for data releases and central bank activity. So let's have a look at what the market is indicating in front of these news releases. Now let's start by looking at this relative rotation graph of major stock indices versus a benchmark of cash. So this is not versus an index like the MSCI world, it's not that. It's versus cash. So anything on the right hand side of the vertical here is in a relative uptrend versus cash and anything behind this area is lagging. We'll also look at the direction northeasterly being a good direction because then it is moving easily. So improving on a relative ratio basis and also with positive momentum. We're looking today at the US indices. So here we have the NASDAQ, here we have the S&P, here we have the Dow Jones Industrial Average and here we have the Russell 2000 and that is the order of things. Looking at the direction of the NASDAQ it's heading strongly east. It's got a fairly long tail here so it's moving quite quickly east although it has slowed up a little bit. At the moment east means improving on a relative basis. So the strength in this particular narrow index and actually it in itself is being pushed by a few stocks. We know this and we've discussed this before and that is still the case. The S&P has got more of a 45 degree trajectory here. So it's doing well. It is behind the NASDAQ but it's looking good. Now it's going to be very interesting to look at the chart of that. The Dow has crossed around from the lagging quadrant straight into the leading quadrant. So picking up there. The Russell 2000 has got a long tail so it's swung around swiftly but it's still in the lagging quadrant. So it did begin to look as though it was sort of picking up some relative strength but seemingly not. It is in the right direction but it's way, way behind the others and it's not even above 100 on the JDK RS momentum. So we'll go through these one by one. Starting from the left on the RG chart, the Russell 2000 index. We've got a series of lower highs in place here. A big area of resistance here and it has come up some higher lows in place here and the MACD on this weekly chart has turned up but there is resistance ahead. Principally at the trend line itself, 1,931 and then the last lower high which has defined the down trend is at 1,976. The MACD is improving. That is true. The RSI is also improving. It's improving better but it's in a really consolidation range and it has got some serious resistance ahead. The Dow Jones Industrial Average, we have got really I think an ascending triangle in place here. We've got 1, 2, 3, 4 highs at around 34,500 and we've got rising lows in here. So that's a triangular shape and it's bullish. Rising lows and every time it comes back the bulls get more aggressive in their buying and pay up at a higher level. There's a great deal of commitment therefore to the Dow Jones at this level here and breaking that will turn a lot of the shorts into losses and nobody has shorted at a higher level in recent times since August and so it's very vulnerable to a sharp move up on the basis of short-covering and relief from the fact that the Dow just can't struggle through that level. Above us we haven't got as much resistance. I don't believe as we've got on the Russ of 2000. We've got that big, large consolidation. We've got less of a consolidation there. I think there's potential here. It could be close. We're moving up. The MACD is not strong. It's kind of neutral and the RSI is a little bit strong. Bit early I think because we're quite far from the 34,000, let's say 500 level at the moment but watch this very closely for potentially quite an explosive move to the upside if we break up through the triangle. The S&P broke through that troublesome 4,200 level and then shot up to the next resistance level which was at the August high at 4,300 and it's testing that right now. Is it going to break it? Well, the MACD is looking positive. This is a weekly chart, don't forget and the gap is widening here. That's increasing upside momentum at this resistance level. The RSI is making a new high. That's a very strong message indeed. The resistance itself I don't think is particularly strong. This looks very likely that it is going to break and then the next resistance which again I don't think is very strong is at 4,600. So I think that this resistance level is about to be tested and I think on balance most likely successfully and then the next jump could be quite substantial above the 4,600 level for the S&P. The NASDAQ is extremely strong or remains extremely strong after the breaking from these 10,500 lows. A powder head broken up through the 13,500 resistance here which wasn't strong but we've powered away from it and we're heading towards the next resistance which again is not that strong which is at 15,200 and then insight is the November high up at 16,700. It's getting steeper in its climb so it's getting more energy. The MACD gap is widening here. There's lots of upside power in this market and the RSI is making new highs. It's strong as it gallops towards this resistance level which is in itself not that strong. So it looks to me that this has got legs on the far right and pointing easterly on the ROG indicates of this outperformance that we're getting of the US indices by this particular index will be maintained. And now a look at the foreign exchange market. This is a weekly chart, ROG chart of the dollar and major currencies versus the dollar and something that should strike you immediately is we've got one currency heading northeasterly strongly and a currency heading southwesterly strongly. So Canadian dollar has passed through now into the leading quadrant on the weekly sampling swung through quite quickly and it's heading northeasterly. This is something we featured in last week's CMC update and so this situation continues. This looks extremely good on the chart and what looks extremely bad and continue to look extremely bad is the Japanese yen. If you wanted to do a pair, Canadian dollar long versus the Japanese yen would be something worth considering. The euro is easing back a bit but it's still relatively strong. The pound has been surprising. I shouldn't say this but it has been strong and it's holding its position. This very short tail here is an indication that it's stable at this position on the right here in the RS ratio but the outstanding thing to observe is the strength of the Canadian dollar, not yet the Australian dollar but the Canadian dollar and the continued weakness of the Japanese yen. I thank you very much indeed. I hope you have found this update useful. It would be very interesting to see how this news affects these existing trends and some of them are quite strong so even if the news is not in the favour of the trend maybe the trend itself is stronger and the news will be worked out relatively quickly but we'll see about that or maybe the news will accelerate the trends. Thank you very much indeed for listening. I'm always honoured that you spend time with me. This is Travaneel signing off from London and wish you a good rest of the week and may the trend be with you.