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

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2743, -2.16%	Bearish	Bearish
Nifty	11035, 1.58%	Neutral **	Bullish
China Shanghai Index	2970, -0.81%	Bearish	Bearish
Gold	1299, 0.01%	Neutral	Neutral
WTIC Crude	56.07, 0.48%	Neutral	Neutral
Copper	2.89, -1.31%	Bearish	Bearish
Baltic Dry Index	649, -2.26%	Bearish	Bearish
Euro	1.1231, -1.54%	Bearish	Bearish
Dollar/Yen	111.14, -0.81%	Bearish	Bearish
Dow Transports	10117, -3.30%	Bearish	Bearish
High Yield (ETF)	35.40, -0.53%	Bearish	Bearish
US 10 year Bond Yield	2.63%, -4.72%	Bullish	Bullish
Nyse Summation Index	1072, -16.26%	Bearish	Neutral
US Vix	16.05, 18.28%	Bearish	Bearish
Skew	126	Neutral	Neutral
20 DMA, S and P 500	2769, Below	Bearish	Neutral
50 DMA, S and P 500	2674, Above	Bullish	Neutral
200 DMA, S and P 500	2751, Below	Bearish	Neutral
20 DMA, Nifty	10840, Above	Neutral	Bullish
50 DMA, Nifty	10840, Above	Neutral	Bullish
200 DMA, Nifty	10869, Above	Neutral	Bullish
India Vix	14.94, -8.20%	Neutral	Bullish
Dollar/Rupee	70.03 -1.37%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	2	7
Bearish Indications	12	9
Outlook	Bearish	Bearish
Observation	The S and P 500 fell and the Nifty rallied last week. Indicators are bearish for the week. The markets are on the verge of a great depression style collapse. Watch those stops.
On the Horizon	US – CPI, PPI, Japan – BOJ rate decision, Euro Zone – CPI, UK – GDP, Parliament vote on Brexit deal
*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 was down and the Nifty was up last week. Indicators are bearish for the upcoming week. QE forever from the FED is about to trigger the deflationary collapse of the century and we are making a major secondary top in global equity markets. The market got its oversold bounce of about 450 points but a 5 year bear market is in the making. The trend is changing from bullish to bearish. Looking for significant under performance in the Nifty going forward on rapidly deteriorating macros. The India vix is finally catching up to the US vix suggesting there may be a sudden catch up on the downside for the Indian market in 2019. A 5 year deflationary wave is about to start in key asset classes like the Euro, stocks and commodities amidst a number of bearish divergences and Hindenburg omens. We are on the verge of a multi-year great depression. 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. Tail risk has been very high off late. The critical levels to watch for the week are 2760 (up) and 2730 (down) on the S & P 500 and 11100 (up) and 10950 (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.