|
Indicator
|
Weekly
Level / Change
|
Implication
for
S
& P 500
|
Implication
for Nifty*
|
|
S
& P 500
|
3110, -0.38%
|
Neutral
|
Neutral
|
|
Nifty
|
11914,
0.25%
|
Neutral
**
|
Neutral
|
|
China
Shanghai Index
|
2885, -0.44%
|
Neutral
|
Neutral
|
|
Gold
|
1465, -0.33%
|
Neutral
|
Neutral
|
|
WTIC Crude
|
57.77,
1.47%
|
Bullish
|
Bullish
|
|
Copper
|
2.65, 0.38%
|
Neutral
|
Neutral
|
|
Baltic
Dry Index
|
1284, -5.38%
|
Bearish
|
Bearish
|
|
Euro
|
1.1021,-
0.46%
|
Neutral
|
Neutral
|
|
Dollar/Yen
|
108.78,
0.10%
|
Neutral
|
Neutral
|
|
Dow
Transports
|
10785,
-0.86%
|
Bearish
|
Bearish
|
|
High
Yield (Bond)
|
107.92,
-0.16%
|
Neutral
|
Neutral
|
|
US 10
year Bond Yield
|
1.77%,
-2.09%
|
Bullish
|
Bullish
|
|
Nyse
Summation Index
|
544, -16.99%
|
Bearish
|
Neutral
|
|
US Vix
|
12.34,
2.41%
|
Bearish
|
Bearish
|
|
Skew
|
126
|
Neutral
|
Neutral
|
|
20
DMA, S and P 500
|
3085, Above
|
Bullish
|
Neutral
|
|
50
DMA, S and P 500
|
3018, Above
|
Bullish
|
Neutral
|
|
200
DMA, S and P 500
|
2919, Above
|
Bullish
|
Neutral
|
|
20
DMA, Nifty
|
11876,
Above
|
Neutral
|
Bullish
|
|
50
DMA, Nifty
|
11518,
Above
|
Neutral
|
Bullish
|
|
200
DMA, Nifty
|
11399,
Above
|
Neutral
|
Bullish
|
|
India
Vix
|
14.87,
-5.60%
|
Neutral
|
Bullish
|
|
Dollar/Rupee
|
71.79,
-0.21%
|
Neutral
|
Neutral
|
|
Overall
|
S
& P 500
|
Nifty
|
|
|
Bullish
Indications
|
5
|
6
|
|
|
Bearish
Indications
|
4
|
3
|
|
|
Outlook
|
Bullish
|
Bullish
|
|
|
Observation
|
The S
and P 500 was and the Nifty were unchanged last week. Indicators are marginally
bullish for the week.
The
markets are on the verge of a great depression
style collapse. Watch those stops.
|
||
|
On the
Horizon
|
Eurozone – German unemployment data, CPI,
US – GDP
|
||
|
*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 were relatively unchanged last
week. Indicators are marginally 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 3125 on the Sand P 500. The market is looking like the short of a
life time with non-conformations from the transports, other global indices
and commodities and insane valuations. 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 over
stretched valuations. 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 3120 (up) and 3100 (down) on the S
& P 500 and 12000
(up) and 11800 (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.