Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning January 9

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2277, 1.70%	Bullish	Bullish
Nifty	8244, 0.71%	Neutral**	Bullish
China Shanghai Index	3154, 1.63%	Bullish	Bullish
Gold	1173, 1.88%	Bullish	Bullish
WTIC Crude	53.99, 0.50%	Bullish	Bullish
Copper	2.55, 1.62%	Bullish	Bullish
Baltic Dry Index	963, 0.21%	Neutral	Neutral
Euro	1.053, 0.08%	Neutral	Neutral
Dollar/Yen	116.97, -0.29%	Neutral	Neutral
Dow Transports	9104, 0.67%	Bullish	Bullish
High Yield (ETF)	36.74, 0.80%	Bullish	Bullish
US 10 year Bond Yield	2.34%, -1.14%	Bullish	Bullish
Nyse Summation Index	577, 24.75%	Bullish	Neutral
US Vix	11.32, -19.37%	Bullish	Bullish
20 DMA, S and P 500	2261, Above	Bullish	Neutral
50 DMA, S and P 500	2205, Above	Bullish	Neutral
200 DMA, S and P 500	2141, Above	Bullish	Neutral
20 DMA, Nifty	8121, Above	Neutral	Bullish
50 DMA, Nifty	8202, Above	Neutral	Bullish
200 DMA, Nifty	8274, Below	Neutral	Bearish
India Vix	14.91, -3.57%	Neutral	Bullish
Dollar/Rupee	68.15, 0.28%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	13	13
Bearish Indications	0	1
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty rallied last week. Indicators are bullish. The Trump bounce is largely over. Time to watch those stops.
On the Horizon	China – Loan data, CPI, U.S – Retail sales, U. Mich. Consumer confidence
*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. Signals are at bullish extremes for the upcoming week. The FED rate hike is yet to be priced in and sentiment indicators are back in complacent mode. Transports are beginning to under perform. Bond yields have made a dramatic surge up and risky segments of the market like emerging markets are breaking down on broad dollar strength. The critical levels to watch are 2290 (up) and 2260 (down) on the S & P and 8300 (up) and 8150 (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.