Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning July 16

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2801, 1.50%	Bullish	Bullish
Nifty	11019, 2.29%	Neutral **	Bullish
China Shanghai Index	2831, 3.06%	Bullish	Bullish
Gold	1241, -1.16%	Bearish	Bearish
WTIC Crude	71.01, -3.78%	Bearish	Bearish
Copper	2.78, -1.72%	Bearish	Bearish
Baltic Dry Index	1632, 1.24%	Bullish	Bullish
Euro	1.1693, -0.49%	Neutral	Neutral
Dollar/Yen	112.33, 1.75%	Bullish	Bullish
Dow Transports	10546, 0.69%	Bullish	Bullish
High Yield (ETF)	35.69, 0.37%	Neutral	Neutral
US 10 year Bond Yield	2.83%, 0.00%	Neutral	Neutral
Nyse Summation Index	676, 17.25%	Bullish	Neutral
US Vix	12.18, -8.90%	Bullish	Bullish
Skew	143	Bearish	Bearish
20 DMA, S and P 500	2753, Above	Bullish	Neutral
50 DMA, S and P 500	2737, Above	Bullish	Neutral
200 DMA, S and P 500	2681, Above	Bullish	Neutral
20 DMA, Nifty	10790, Above	Neutral	Bullish
50 DMA, Nifty	10733, Above	Neutral	Bullish
200 DMA, Nifty	10478, Above	Neutral	Bullish
India Vix	12.30, -1.13%	Neutral	Bullish
Dollar/Rupee	68.48, -0.39%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	10	11
Bearish Indications	4	4
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty rallied last week. Indicators are bullish. The markets are close to making secondary tops. Watch those stops.
On the Horizon	China – GDP, Australia – Employment data, New Zealand – CPI, Europe - CPI, U.K – Employment data, CPI, Retail sales, U.S – Retail sales, 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 rallied last week. Indicators are bullish for the upcoming week. This rally is close to a major secondary top in key asset classes near 2830 on the S and P, 1.20 on the Euro and 11,100 on the Nifty. Quantitative tightening by the FED is yet to be priced in fully. 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 for the week are 2810 (up) and 2790 (down) on the S & P and 11100 (up) and 10900 (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.