Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning July 24

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2473, 0.54%	Bullish	Bullish
Nifty	9915, 0.28%	Neutral **	Neutral
China Shanghai Index	3238, 0.48%	Neutral	Neutral
Gold	1255, 2.23%	Bullish	Bullish
WTIC Crude	45.77, -1.65%	Bearish	Bearish
Copper	2.72, 1.17%	Bullish	Bullish
Baltic Dry Index	964, 8.56%	Bullish	Bullish
Euro	1.1661, 1.69%	Bullish	Bullish
Dollar/Yen	111.13, -1.23%	Bearish	Bearish
Dow Transports	9471, -2.79%	Bearish	Bearish
High Yield (ETF)	37.32, 0.35%	Neutral	Neutral
US 10 year Bond Yield	2.23%, -3.75%	Bullish	Bullish
Nyse Summation Index	728, 22.48%	Bullish	Neutral
US Vix	9.36, -1.58%	Bullish	Bullish
Skew	135	Neutral	Neutral
20 DMA, S and P 500	2441, Above	Bullish	Neutral
50 DMA, S and P 500	2427, Above	Bullish	Neutral
200 DMA, S and P 500	2314, Above	Bullish	Neutral
20 DMA, Nifty	9720, Above	Neutral	Bullish
50 DMA, Nifty	9628, Above	Neutral	Bullish
200 DMA, Nifty	8905, Above	Neutral	Bullish
India Vix	11.09, -0.78%	Neutral	Bullish
Dollar/Rupee	64.46, 0.31%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	10	11
Bearish Indications	3	3
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	Russia – Rate decision, UK - GDP, Australia – CPI, Euro Zone – PMI, German IFO business index, Rate decision, U.S –Oil inventories, Existing and new home sales, Consumer confidence, Durable goods, FOMC rate decision, GDP, Canada – GDP
*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. Transports and the Yen are flashing warning signs. Market internals are flashing major warning signs of a large decline ahead. The critical levels to watch are 2485 (up) and 2460 (down) on the S & P and 10000 (up) and 9850 (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.