Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at waning risk appetite stemming from a slide in bank stocks across the globe:

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the up move in Oil following a possible OPEC production cut :

Indicator Watch - How to Use the RSI in Trading

Technical indicators are widely used in trading to determine market direction over different time frames. One of the widely followed technical indicators is the Relative Strength Index (RSI). Here is a useful video from MarketGurukul.com that shows you how to use the RSI in identifying entry and exit levels in trading:

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at a possible dollar rally ahead:

Chart of the Week - Technicals of Key Indices

The chart of the week is courtesy Marty Chenard at stocktiming.com and takes a technical look at some key indices. While most indices are above key resistance levels going back to 2014 the broadest of them all the Nyse composite index (NYA) is still below key resistance levels. Will the NYA join the other indices or the other indices begin to roll over will be worth watching in the upcoming months.

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at possible range break outs in the Yen, Pound and the S & P 500:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning September 26

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2165, 1.19%	Bullish	Bullish
Nifty	8832, 0.59%	Neutral**	Bullish
China Shanghai Index	3034, 1.03%	Bullish	Bullish
Gold	1342, 2.40%	Bullish	Bullish
WTIC Crude	44.48, 1.97%	Bullish	Bullish
Copper	2.20, 1.90%	Bullish	Bullish
Baltic Dry Index	941, 17.62%	Bullish	Bullish
Euro	1.123, 0.62%	Bullish	Bullish
Dollar/Yen	101.00, -1.21%	Bearish	Bearish
Dow Transports	7937, 2.14%	Bullish	Bullish
High Yield (ETF)	36.51, 1.02%	Bullish	Bullish
US 10 year Bond Yield	1.62%, -5.06%	Bullish	Bullish
Nyse Summation Index	572, 4.15%	Bullish	Neutral
US Vix	12.29, -20.04%	Bullish	Bullish
20 DMA, S and P 500	2161, Above	Bullish	Neutral
50 DMA, S and P 500	2169, Below	Bearish	Neutral
200 DMA, S and P 500	2061, Above	Bullish	Neutral
20 DMA, Nifty	8780, Above	Neutral	Bullish
50 DMA, Nifty	8676, Above	Neutral	Bullish
200 DMA, Nifty	7974, Above	Neutral	Bullish
India Vix	13.25, -9.14%	Neutral	Bullish
Dollar/Rupee	66.70, -0.56%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	13	17
Bearish Indications	2	1
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty rallied last week. Indicators are bullish. Markets are challenging resistance again. Time to tighten those stops.
On the Horizon	China – PMI, Japan – CPI, Canada - GDP, Euro zone – German employment data, CPI, Euro Zone CPI, U.S. - Consumer confidence, Durable goods
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, dailyfx.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 and the Nifty rallied last week on the FED. Signals are bullish for the upcoming week. Market momentum and breadth have been showing divergences for months now and sentiment indicators are still highly complacent and a big breakdown will likely start soon.  The markets are likely to continue major breakdowns in 2016. The critical levels to watch are 2175 (up) and 2150 (down) on the S & P and 8900 (up) and 8700 (down) on the Nifty. A significant breach of the above levels could trigger the next big move in the above markets. You can check out last week’s report for a comparison.  Love your thoughts and feedback.

Indicator Watch - How to Use the MACD in Trading?

Technical indicators are widely used in trading to determine market direction over different time frames. One of the widely followed technical indicators is the moving average cross over divergence (MACD). Here is a useful video from the currency strategists at FXStreet that shows you how to use the MACD in identifying entry and exit levels in trading:

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at markets post key monetary policy decisions from the BOJ and the FED:

Daily Forex Insight for Fed Day

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the FOMC, BOJ and RBNZ central bank meetings:

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the Yen ahead of the upcoming BOJ rate decision:

Massive M top in Nifty completing and targeting 6000

Check out this chart on the Nifty from StockCharts.com. A massive M top has completed on the Nifty that targets 6000 long term. This incidentally coincides with a trailing P/E of over 24 which is suggestive of over valuation. Note the recent exhaustion candle much like in March 2015 from which the market fell 25%.

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at important central bank meetings ahead namely the BOJ and the FOMC:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning September 19

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2139, 0.53%	Bullish	Bullish
Nifty	8780, -0.98%	Neutral**	Bearish
China Shanghai Index	3003, -2.47%	Bearish	Bearish
Gold	1310, -1.82%	Bearish	Bearish
WTIC Crude	43.62, -4.93%	Bearish	Bearish
Copper	2.16, 3.23%	Bullish	Bullish
Baltic Dry Index	800, -0.50%	Bearish	Bearish
Euro	1.116, -0.67%	Bearish	Bearish
Dollar/Yen	102.27, -0.38%	Neutral	Neutral
Dow Transports	7770, -1.56%	Bearish	Bearish
High Yield (ETF)	36.14, -0.03%	Neutral	Neutral
US 10 year Bond Yield	1.70%, 1.73%	Bearish	Bearish
Nyse Summation Index	549, -27.59%	Bearish	Neutral
US Vix	15.37, -12.17%	Bullish	Bullish
20 DMA, S and P 500	2166, Below	Bearish	Neutral
50 DMA, S and P 500	2168, Below	Bearish	Neutral
200 DMA, S and P 500	2059, Above	Bullish	Neutral
20 DMA, Nifty	8739, Above	Neutral	Bullish
50 DMA, Nifty	8635, Above	Neutral	Bullish
200 DMA, Nifty	7952, Above	Neutral	Bullish
India Vix	14.58, 10.20%	Neutral	Bearish
Dollar/Rupee	67.08, 0.21%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	3	6
Bearish Indications	10	9
Outlook	Bearish	Bearish
Observation	The S and P 500 bounced and the Nifty fell last week. Indicators are bearish. Markets are breaking down from the top of their recent trading ranges. Time to tighten those stops.
On the Horizon	Japan – Rate decision, New Zealand – Rate decision, Canada – CPI, US – FOMC rate decision
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, dailyfx.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 rebounded slightly and the Nifty fell last week. Signals are bearish for the upcoming week. Market momentum and breadth have been showing divergences for months now and sentiment indicators are still highly complacent and a big breakdown is likely underway.  The markets are likely to continue major breakdowns in 2016. The critical levels to watch are 2150 (up) and 2130 (down) on the S & P and 8900 (up) and 8700 (down) on the Nifty. A significant breach of the above levels could trigger the next big move in the above markets. You can check out last week’s report for a comparison. You can also check out support and resistance levels of the S and P 500 and Nifty Indices. Love your thoughts and feedback.