Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning October 09

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2549, 1.19%	Bullish	Bullish
Nifty	9980, 1.95%	Neutral **	Bullish
China Shanghai Index	3349, -0.11%	Neutral	Neutral
Gold	1275, -0.77%	Bearish	Bearish
WTIC Crude	49.29, -4.61%	Bearish	Bearish
Copper	3.03, 2.50%	Bullish	Bullish
Baltic Dry Index	1382, -0.65%	Bearish	Bearish
Euro	1.1731, -0.70%	Bearish	Bearish
Dollar/Yen	112.62, 0.08%	Neutral	Neutral
Dow Transports	9887, -0.28%	Neutral	Neutral
High Yield (ETF)	37.18, 0.04%	Neutral	Neutral
US 10 year Bond Yield	2.37%, 1.89%	Bearish	Bearish
Nyse Summation Index	912, 14.73%	Bullish	Neutral
US Vix	9.65, 1.47%	Bearish	Bearish
Skew	140	Neutral	Neutral
20 DMA, S and P 500	2512, Above	Bullish	Neutral
50 DMA, S and P 500	2480, Above	Bullish	Neutral
200 DMA, S and P 500	2396, Above	Bullish	Neutral
20 DMA, Nifty	9975, Above	Neutral	Bullish
50 DMA, Nifty	9945, Above	Neutral	Bullish
200 DMA, Nifty	9311, Above	Neutral	Bullish
India Vix	11.12, -10.95%	Neutral	Bullish
Dollar/Rupee	65.44, 0.21%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	6	7
Bearish Indications	6	6
Outlook	Neutral	Bullish
Observation	The S and P 500 made new highs and the Nifty rallied last week. Indicators are mixed. The market is topping. Time to tighten those stops.
On the Horizon	UK – Manufacturing production change, U.S – PPI, Oil inventories, Retail sales, CPI
*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 made new highs and the Nifty rallied last week. Signals are mixed for the upcoming week. Quantitative tightening by the FED is yet to be priced in and sentiment indicators are back in complacency mode. The markets are still trading well over 3 standard deviations above their long term averages from which corrections usually result. The critical levels to watch are 2560 (up) and 2540 (down) on the S & P and 10050 (up) and 9900 (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.