Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning July 17

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2459, 1.41%	Bullish	Bullish
Nifty	9886, 2.28%	Neutral **	Bullish
China Shanghai Index	3222, 0.14%	Neutral	Neutral
Gold	1228, 1.47%	Bullish	Bullish
WTIC Crude	46.54, 5.22%	Bullish	Bullish
Copper	2.69, 1.66%	Bullish	Bullish
Baltic Dry Index	888, 7.12%	Bullish	Bullish
Euro	1.1467, 0.58%	Bullish	Bullish
Dollar/Yen	112.51, -1.23%	Bearish	Bearish
Dow Transports	9743, 0.49%	Neutral	Neutral
High Yield (ETF)	37.19, 0.98%	Bullish	Bullish
US 10 year Bond Yield	2.32%, -3.09%	Bullish	Bullish
Nyse Summation Index	594, 6.11%	Bullish	Neutral
US Vix	9.51, -15.01%	Bullish	Bullish
Skew	138	Neutral	Neutral
20 DMA, S and P 500	2434, Above	Bullish	Neutral
50 DMA, S and P 500	2420, Above	Bullish	Neutral
200 DMA, S and P 500	2307, Above	Bullish	Neutral
20 DMA, Nifty	9656, Above	Neutral	Bullish
50 DMA, Nifty	9575, Above	Neutral	Bullish
200 DMA, Nifty	8876, Above	Neutral	Bullish
India Vix	11.17, 2.81%	Neutral	Bearish
Dollar/Rupee	64.27, -0.51%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	13	14
Bearish Indications	1	2
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty made new highs last week. Indicators are bullish. The market is in unchartered territory. Time to tighten those stops.
On the Horizon	China – GDP, Industrial production, Japan – Rate decision, UK - CPI, Carney speech, Retail sales, Australia – CPI, Employment data, New Zealand – CPI, Euro Zone – CPI, German ZEW sentiment survey, Rate decision, U.S –Oil inventories, Canada – CPI, Retail sales
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, investing.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 and the Nifty made new highs last week. Signals are bullish for the upcoming week. Past and future FED rate hikes are yet to be priced in and sentiment indicators are back in complacency mode. Commodities are breaking down yet again. Market internals are flashing major warning signs of a large decline ahead. The critical levels to watch are 2470 (up) and 2450 (down) on the S & P and 9950 (up) and 9800 (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.