Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning December 07

Indicator	Weekly Level / Change / Significance	Implication for S & P 500	Implication for Nifty*
S & P 500	2092, 0.08%	Neutral	Neutral
Nifty	7782, -2.02%	Neutral**	Bearish
China Shanghai Index	3525, 2.58%	Bullish	Bullish
Gold	1086, 2.81%	Bullish	Bullish
WTIC Crude	40.14, -3.90%	Bearish	Bearish
Copper	2.08, 1.14%	Bullish	Bullish
Baltic Dry Index	563, -3.10%	Bearish	Bearish
Euro	1.0900, 2.87%	Bullish	Bullish
Dollar/Yen	123.11, -0.20%	Neutral	Neutral
Dow Transports	7955, -3.17%	Bearish	Bearish
US 10 year Bond Yield	2.28%, 2.25%	Bearish	Bearish
Nyse Summation Index	253, -0.15%	Neutral	Neutral
US Vix	14.81, -2.05%	Bullish	Bullish
20 DMA, S and P 500	2076, Above	Bullish	Neutral
50 DMA, S and P 500	2042, Above	Bullish	Neutral
200 DMA, S and P 500	2065, Above	Bullish	Neutral
20 DMA, Nifty	7862, Below	Neutral	Bearish
50 DMA, Nifty	7999, Below	Neutral	Bearish
200 DMA, Nifty	8288, Below	Neutral	Bearish
India Vix	16.08, -3.86%	Neutral	Bullish
Dollar/Rupee	66.64, -0.39%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	8	5
Bearish Indications	4	8
Outlook	Bullish	Bearish
Observation	The Sand P 500 was unchanged and the Nifty was down last week. Indicators are mixed. Markets are back at resistance and the Vix is signaling complacency. Transports and the high yield market are flashing warning signs.
On the Horizon	Australia – Employment data, New Zealand – Rate decision, China – CPI, Loan and financing data, Euro Zone – GDP, U.K – Rate decision, Swiss – Rate decision US –Retail Sales & Consumer Confidence.
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, FXCM
**Neutral	Changes less than 0.5% are considered neutral

The US market was unchanged and the Nifty fell hard last week. Signals are mixed for the upcoming week. The markets are back at resistance and are likely to continue to correct with most emerging markets, and commodities already breaking down on a strong dollar and a hawkish FED.  Transports and the high yield market are signaling trouble ahead. The critical levels to watch are 2100 (up) and 2080 (down) on the S & P and 7900 (up) and 7700 (down) on the Nifty. A significant breach of the above levels could trigger the next big move in the markets very shortly. You can check out last week’s report for a comparison. You can also check out snapshots of the S and P 500 and Nifty Indices. Love your thoughts and feedback.