Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning December 09

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	3146, 0.16%	Neutral	Neutral
Nifty	11922, -1.12%	Neutral **	Bearish
China Shanghai Index	2912, 1.39%	Bullish	Bullish
Gold	1465, -0.55%	Bearish	Bearish
WTIC Crude	59.13, 7.18%	Bullish	Bullish
Copper	2.75, 3.27%	Bullish	Bullish
Baltic Dry Index	1558, 1.96%	Bullish	Bullish
Euro	1.1059, 0.38%	Neutral	Neutral
Dollar/Yen	108.59, -0.86%	Bearish	Bearish
Dow Transports	10709, -1.37%	Bearish	Bearish
High Yield (Bond)	108.26, -0.07%	Neutral	Neutral
US 10 year Bond Yield	1.84%, 2.69%	Bearish	Bearish
Nyse Summation Index	460, -16.89%	Bearish	Neutral
US Vix	13.62, 7.92%	Bearish	Bearish
Skew	132	Neutral	Neutral
20 DMA, S and P 500	3115, Above	Bullish	Neutral
50 DMA, S and P 500	3042, Above	Bullish	Neutral
200 DMA, S and P 500	2936, Above	Bullish	Neutral
20 DMA, Nifty	11979, Below	Neutral	Bearish
50 DMA, Nifty	11733, Above	Neutral	Bullish
200 DMA, Nifty	11459, Above	Neutral	Bullish
India Vix	13.64, -1.85%	Neutral	Bullish
Dollar/Rupee	71.28, -0.65%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	7	8
Bearish Indications	6	7
Outlook	Bullish	Bullish
Observation	The S and P 500 was up and the Nifty was down 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	Japan – GDP, US – PPI, CPI, FOMC rate decision, UK – GDP, Elections, Eurozone – ECB rate decision
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Stock charts, investing.com

The S and P 500 was up and the Nifty was down 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. 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 3160 (up) and 3135 (down) on the S & P 500 and 12000 (up) and 11850 (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.