Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning November 7

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2085, -1.94%	Bearish	Bearish
Nifty	8434, -2.36%	Neutral**	Bearish
China Shanghai Index	3125, 0.68%	Bullish	Bullish
Gold	1305, 2.17%	Bullish	Bullish
WTIC Crude	44.07, -9.51%	Bearish	Bearish
Copper	2.27, 3.26%	Bullish	Bullish
Baltic Dry Index	855, 7.14%	Bullish	Bullish
Euro	1.114, 1.36%	Bullish	Bullish
Dollar/Yen	103.04, -1.60%	Bearish	Bearish
Dow Transports	8075, 0.71%	Bullish	Bullish
High Yield (ETF)	35.82, -1.01%	Bearish	Bearish
US 10 year Bond Yield	1.78%, -3.36%	Bullish	Bullish
Nyse Summation Index	-278, -1163.73%	Bearish	Neutral
US Vix	22.51, 39.04%	Bearish	Bearish
20 DMA, S and P 500	2130, Below	Bearish	Neutral
50 DMA, S and P 500	2148, Below	Bearish	Neutral
200 DMA, S and P 500	2083, Above	Bullish	Neutral
20 DMA, Nifty	8630, Below	Neutral	Bearish
50 DMA, Nifty	8700, Below	Neutral	Bearish
200 DMA, Nifty	8092, Above	Neutral	Bullish
India Vix	16.85, 14.98%	Neutral	Bearish
Dollar/Rupee	66.80, 0.01%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	8	7
Bearish Indications	8	10
Outlook	Neutral	Bearish
Observation	The S and P 500 and the Nifty fell hard last week. Indicators are mildly bearish. Markets are oversold so a bounce is likely after which downside will resume. Time to tighten those stops.
On the Horizon	China – CPI, New Zealand – Rate decision, US – U. Mich. Consumer confidence, US elections
*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 fell hard last week. Signals are slightly bearish for the upcoming week. Market momentum and breadth have been showing divergences for months now and sentiment indicators are finally catching up to the downside and a big breakdown has likely started. Short term we are oversold and due a bounce. The critical levels to watch are 2095 (up) and 2175 (down) on the S & P and 8500 (up) and 8400 (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.