Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning August 05

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2932, -3.10%	Bearish	Bearish
Nifty	10997, -2.54%	Neutral **	Bearish
China Shanghai Index	2868, -2.60%	Bearish	Bearish
Gold	1453, 2.35%	Bullish	Bullish
WTIC Crude	55.23, -1.73%	Bearish	Bearish
Copper	2.57, -4.50%	Bearish	Bearish
Baltic Dry Index	1788, -7.69%	Bearish	Bearish
Euro	1.1108, -0.17%	Neutral	Neutral
Dollar/Yen	106.61, -1.86%	Bearish	Bearish
Dow Transports	10374, -3.73%	Bearish	Bearish
High Yield (Bond)	107.93, -0.89%	Bearish	Bearish
US 10 year Bond Yield	1.84%, -10.91%	Bullish	Bullish
Nyse Summation Index	658, -11.06%	Bearish	Neutral
US Vix	17.61, 44.82%	Bearish	Bearish
Skew	117	Neutral	Neutral
20 DMA, S and P 500	2994, Below	Bearish	Neutral
50 DMA, S and P 500	2928, Above	Bullish	Neutral
200 DMA, S and P 500	2790, Above	Bullish	Neutral
20 DMA, Nifty	11377, Below	Neutral	Bearish
50 DMA, Nifty	11668, Below	Neutral	Bearish
200 DMA, Nifty	11155, Below	Neutral	Bearish
India Vix	15.19, 25.18%	Neutral	Bearish
Dollar/Rupee	69.70, 1.19%	Neutral	Bearish
Overall	S & P 500	Nifty
Bullish Indications	4	2
Bearish Indications	11	15
Outlook	Bearish	Bearish
Observation	The S and P 500 and the Nifty fell hard 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 – PPI, UK – GDP, Japan – GDP, India – RBI rate decision
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Stock charts, investing.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 and the Nifty fell 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 have likely made another major top in global equity markets. The market has established a major top with non-conformations from the transports, other global indices and commodities. The trend is about to change from bullish to bearish and the markets are about to get smashed by a strong dollar. Looking for significant under performance in the Nifty going forward on rapidly deteriorating macros. 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. 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 as the yield curve inverts. The critical levels to watch for the week are 2940 (up) and 2920 (down) on the S & P 500 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.