Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning August 21

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2426, -0.65%	Bearish	Bearish
Nifty	9837, 1.30%	Neutral **	Bullish
China Shanghai Index	3269, 1.88%	Bullish	Bullish
Gold	1292, -0.19%	Neutral	Neutral
WTIC Crude	48.66, -0.33%	Neutral	Neutral
Copper	2.94, 0.94%	Bullish	Bullish
Baltic Dry Index	1247, 14.19%	Bullish	Bullish
Euro	1.1760, -0.51%	Bearish	Bearish
Dollar/Yen	109.18, 0.01%	Neutral	Neutral
Dow Transports	9095, -1.13%	Bearish	Bearish
High Yield (ETF)	36.81, 0.04%	Neutral	Neutral
US 10 year Bond Yield	2.19%, 0.23%	Neutral	Neutral
Nyse Summation Index	242, -47.50%	Bearish	Neutral
US Vix	14.26, -8.06%	Bullish	Bullish
Skew	129	Neutral	Neutral
20 DMA, S and P 500	2466, Below	Bearish	Neutral
50 DMA, S and P 500	2450, Below	Bearish	Neutral
200 DMA, S and P 500	2347, Above	Bullish	Neutral
20 DMA, Nifty	9958, Below	Neutral	Bearish
50 DMA, Nifty	9791, Above	Neutral	Bullish
200 DMA, Nifty	9028, Above	Neutral	Bullish
India Vix	14.57, -4.11%	Neutral	Bullish
Dollar/Rupee	64.07, -0.01%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	5	8
Bearish Indications	6	4
Outlook	Bearish	Bearish
Observation	The S and P 500 was down and the Nifty bounced last week. Indicators are bearish. The market is topping. Time to tighten those stops.
On the Horizon	Euro Zone – German ZEW sentiment, Draghi speeches, German PMI, German IFO business climate index, German GDP, UK – GDP, Canada – Retail sales, U.S – Home sales, Oil inventories, Durable goods, Yellen speech
*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 fell and the Nifty bounced slightly last week. Signals are mixed for the upcoming week. Past and future FED rate hikes are yet to be priced in and sentiment indicators are finally shifting from complacency. Transports and the Yen are flashing warning signs. The markets are still trading at 3 standard deviations above their long term averages from which corrections usually result. The critical levels to watch are 2435 (up) and 2415 (down) on the S & P and 9900 (up) and 9750 (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.