|
Indicator
|
Weekly
Level / Change
|
Implication
for
S
& P 500
|
Implication
for Nifty*
|
|
S
& P 500
|
3023, 1.22%
|
Bullish
|
Bullish
|
|
Nifty
|
11584,
-0.67%
|
Neutral
**
|
Bearish
|
|
China
Shanghai Index
|
2955, 0.57%
|
Bullish
|
Bullish
|
|
Gold
|
1507, 0.87%
|
Bullish
|
Bullish
|
|
WTIC
Crude
|
56.66,
5.36%
|
Bullish
|
Bullish
|
|
Copper
|
2.68, 1.82%
|
Bullish
|
Bullish
|
|
Baltic
Dry Index
|
1801, -2.91%
|
Bearish
|
Bearish
|
|
Euro
|
1.1080,
-0.81%
|
Bearish
|
Bearish
|
|
Dollar/Yen
|
108.66,
0.21%
|
Neutral
|
Neutral
|
|
Dow
Transports
|
10856,
3.31%
|
Bullish
|
Bullish
|
|
High
Yield (Bond)
|
108.86,
0.36%
|
Neutral
|
Neutral
|
|
US 10
year Bond Yield
|
1.80%,
2.62%
|
Bearish
|
Bearish
|
|
Nyse
Summation Index
|
640, 27.95%
|
Bullish
|
Neutral
|
|
US Vix
|
12.65,
-11.23%
|
Bullish
|
Bullish
|
|
Skew
|
126
|
Neutral
|
Neutral
|
|
20
DMA, S and P 500
|
2965, Above
|
Bullish
|
Neutral
|
|
50
DMA, S and P 500
|
2957, Above
|
Bullish
|
Neutral
|
|
200
DMA, S and P 500
|
2877, Above
|
Bullish
|
Neutral
|
|
20
DMA, Nifty
|
11433,
Above
|
Neutral
|
Bullish
|
|
50
DMA, Nifty
|
11178,
Above
|
Neutral
|
Bullish
|
|
200
DMA, Nifty
|
11303,
Above
|
Neutral
|
Bullish
|
|
India
Vix
|
15.32,
-3.85%
|
Neutral
|
Bullish
|
|
Dollar/Rupee
|
70.82,
-0.38%
|
Neutral
|
Neutral
|
|
Overall
|
S
& P 500
|
Nifty
|
|
|
Bullish
Indications
|
11
|
11
|
|
|
Bearish
Indications
|
3
|
4
|
|
|
Outlook
|
Bullish
|
Bullish
|
|
|
Observation
|
The S
and P 500 rallied and the Nifty fell last week. Indicators are bullish for
the week.
The
markets are on the verge of a great depression
style collapse. Watch those stops.
|
||
|
On the
Horizon
|
Eurozone
– German
employment data, CPI, US – FOMC rate decision, Employment data, CPI, Japan
– BOJ 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 rallied and the Nifty fell last week. Indicators are bullish for the upcoming week. QE forever from the FED is about to trigger
the deflationary collapse of the century and we are likely making another major
top in global equity markets that will probably fail at resistance near 3065 on
the Sand P 500. The market is
establishing 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 3035 (up) and 3010 (down) on the S & P 500 and 11650 (up) and 11500
(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. My apologies for missing last weeks post. Love your thoughts and feedback.