Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning September 30

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2962, -1.01%	Bearish	Bearish
Nifty	11512, 2.11%	Neutral **	Bullish
China Shanghai Index	2932, -2.47%	Bearish	Bearish
Gold	1503, -0.77%	Bearish	Bearish
WTIC Crude	56.17, -3.31%	Bearish	Bearish
Copper	2.60, -0.31%	Neutral	Neutral
Baltic Dry Index	1857, -12.86%	Bearish	Bearish
Euro	1.0940, -0.71%	Bearish	Bearish
Dollar/Yen	107.96, 0.36%	Neutral	Neutral
Dow Transports	10341, -1.08%	Bearish	Bearish
High Yield (Bond)	108.68, -0.40%	Neutral	Neutral
US 10 year Bond Yield	1.69%, -2.00%	Bullish	Bullish
Nyse Summation Index	735, -6.07%	Bearish	Neutral
US Vix	17.22, 12.40%	Bearish	Bearish
Skew	117	Neutral	Neutral
20 DMA, S and P 500	2980, Below	Bearish	Neutral
50 DMA, S and P 500	2949, Above	Bullish	Neutral
200 DMA, S and P 500	2833, Above	Bullish	Neutral
20 DMA, Nifty	11093, Above	Neutral	Bullish
50 DMA, Nifty	11113, Above	Neutral	Bullish
200 DMA, Nifty	11247, Above	Neutral	Bullish
India Vix	16.12, 4.64%	Neutral	Bearish
Dollar/Rupee	70.51, -0.80%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	3	6
Bearish Indications	10	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 – Employment data, UK – GDP, Eurozone – German employment data, CPI, 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 fell and the Nifty rallied 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 and are failing at resistance. The market has established a major top with non-conformations from the transports, other global indices and commodities and a massive drop in the S and P 500 looks imminent. 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 2975 (up) and 2950 (down) on the S & P 500 and 11600 (up) and 11450 (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.