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.