Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning February 20

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2351, 1.51%	Bullish	Bullish
Nifty	8822, 0.32%	Neutral**	Neutral
China Shanghai Index	3202, 0.17%	Neutral	Neutral
Gold	1239, 0.26%	Neutral	Neutral
WTIC Crude	53.78, -0.15%	Neutral	Neutral
Copper	2.71, -2.20%	Bearish	Bearish
Baltic Dry Index	741, 5.56%	Bullish	Bullish
Euro	1.062, -0.23%	Neutral	Neutral
Dollar/Yen	112.89, -0.30%	Neutral	Neutral
Dow Transports	9495, 1.08%	Bullish	Bullish
High Yield (ETF)	36.96, 0.16%	Neutral	Neutral
US 10 year Bond Yield	2.43%, 0.66%	Bearish	Bearish
Nyse Summation Index	779, 13.50%	Bullish	Neutral
US Vix	11.49, 5.90%	Bearish	Bearish
20 DMA, S and P 500	2303, Above	Bullish	Neutral
50 DMA, S and P 500	2279, Above	Bullish	Neutral
200 DMA, S and P 500	2173, Above	Bullish	Neutral
20 DMA, Nifty	8684, Above	Neutral	Bullish
50 DMA, Nifty	8395, Above	Neutral	Bullish
200 DMA, Nifty	8397, Above	Neutral	Bullish
India Vix	13.43, 1.94%	Neutral	Bearish
Dollar/Rupee	67.08, 0.32%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	7	6
Bearish Indications	3	4
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty were up last week. Indicators are bullish. The market is in melt up mode. Time to watch those stops.
On the Horizon	U.K – GDP, Carney speech, Euro zone – Euro zone CPI, U.S – FOMC minutes, Canada - CPI
*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 moved up last week. Signals are bullish for the upcoming week. Possible FED rate hikes are yet to be priced in and sentiment indicators are back in complacent mode. Risk reward is shifting towards the downside. The critical levels to watch are 2360 (up) and 2340 (down) on the S & P and 8900 (up) and 8750 (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.