Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning December 21

Indicator	Weekly Level / Change / Significance	Implication for S & P 500	Implication for Nifty*
S & P 500	2006, -0.34%	Neutral	Neutral
Nifty	7762, 1.99%	Neutral**	Bullish
China Shanghai Index	3579, 4.20%	Bullish	Bullish
Gold	1066, -0.75%	Bearish	Bearish
WTIC Crude	35.83, 1.33%	Bullish	Bullish
Copper	2.11, -0.26%	Neutral	Neutral
Baltic Dry Index	477, -8.62%	Bearish	Bearish
Euro	1.0868, -1.15%	Bearish	Bearish
Dollar/Yen	121.14, 0.14%	Neutral	Neutral
Dow Transports	7364, -2.13%	Bearish	Bearish
US 10 year Bond Yield	2.20%, 2.81%	Bearish	Bearish
Nyse Summation Index	-244.61, -609.84%	Bearish	Bearish
Junk Bonds (ETF)	33.59, -0.30%	Neutral	Neutral
US Vix	20.70, -15.13%	Bullish	Bullish
20 DMA, S and P 500	2064, Below	Bearish	Neutral
50 DMA, S and P 500	2061, Below	Bearish	Neutral
200 DMA, S and P 500	2062, Below	Bearish	Neutral
20 DMA, Nifty	7796, Below	Neutral	Bearish
50 DMA, Nifty	7954, Below	Neutral	Bearish
200 DMA, Nifty	8234, Below	Neutral	Bearish
India Vix	14.49, -15.66%	Neutral	Bullish
Dollar/Rupee	66.31, -1.25%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	3	6
Bearish Indications	9	9
Outlook	Bearish	Bearish
Observation	The Sand P 500 was unchanged and the Nifty was up last week. Indicators are bearish. Markets are in crash mode. Vix, Transports and the high yield market are flashing warning signs.
On the Horizon	Canada – GDP, Japan – CPI, US – Durable goods, Personal consumption data.
*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 was up last week. Signals are bearish for the upcoming week. The markets are getting oversold but are in crash mode, 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 Vix is implying a crash. The critical levels to watch are 2030 (up) and 2000 (down) on the S & P and 7800 (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.