Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning September 11

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2461, -0.61%	Bearish	Bearish
Nifty	9935, -0.40%	Neutral **	Neutral
China Shanghai Index	3365, -0.06%	Neutral	Neutral
Gold	1351, 1.56%	Bullish	Bullish
WTIC Crude	47.48, 0.40%	Neutral	Neutral
Copper	3.04, -2.45%	Bearish	Bearish
Baltic Dry Index	1296, 9.46%	Bullish	Bullish
Euro	1.2035, 1.48%	Bullish	Bullish
Dollar/Yen	107.80, -2.25%	Bearish	Bearish
Dow Transports	9384, 0.30%	Neutral	Neutral
High Yield (ETF)	36.93, -0.49%	Neutral	Neutral
US 10 year Bond Yield	2.06%, -4.45%	Bullish	Bullish
Nyse Summation Index	347, 29.96%	Bullish	Neutral
US Vix	12.12, 19.64%	Bearish	Bearish
Skew	131	Neutral	Neutral
20 DMA, S and P 500	2452, Above	Bullish	Neutral
50 DMA, S and P 500	2455, Above	Bullish	Neutral
200 DMA, S and P 500	2368, Above	Bullish	Neutral
20 DMA, Nifty	9866, Above	Neutral	Bullish
50 DMA, Nifty	9869, Above	Neutral	Bullish
200 DMA, Nifty	9137, Above	Neutral	Bullish
India Vix	12.96, 11.03%	Neutral	Bearish
Dollar/Rupee	63.97, -0.09%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	8	7
Bearish Indications	4	5
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty fell last week. Indicators are bullish. The market is topping. Time to tighten those stops.
On the Horizon	China – Industrial production, Australia – Employment data, UK – CPI, Employment data, BOE rate decision, Switzerland – Rate decision, Russia – Rate decision, U.S – PPI, Oil inventories, 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 fell 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. 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 2470 (up) and 2450 (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.