Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning December 16

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	3169, 0.73%	Bullish	Bullish
Nifty	12087, 1.39%	Neutral **	Bullish
China Shanghai Index	2968, 1.91%	Bullish	Bullish
Gold	1480, 1.03%	Bullish	Bullish
WTIC Crude	59.98, 1.32%	Bullish	Bullish
Copper	2.78, 2.17%	Bullish	Bullish
Baltic Dry Index	1388, -10.91%	Bearish	Bearish
Euro	1.1122, 0.57%	Bullish	Bullish
Dollar/Yen	109.34, 0.66%	Bullish	Bullish
Dow Transports	10776, 0.63%	Bullish	Bullish
High Yield (Bond)	109.17, 0.84%	Bullish	Bullish
US 10 year Bond Yield	1.82%, -1.05%	Bullish	Bullish
Nyse Summation Index	530, 15.23%	Bullish	Neutral
US Vix	12.63, -7.27%	Bullish	Bullish
Skew	145	Bearish	Bearish
20 DMA, S and P 500	3129, Above	Bullish	Neutral
50 DMA, S and P 500	3064, Above	Bullish	Neutral
200 DMA, S and P 500	2944, Above	Bullish	Neutral
20 DMA, Nifty	11996, Above	Neutral	Bullish
50 DMA, Nifty	11775, Above	Neutral	Bullish
200 DMA, Nifty	11487, Above	Neutral	Bullish
India Vix	13.30, -2.49%	Neutral	Bullish
Dollar/Rupee	70.80, -0.68%	Neutral	Bearish
Overall	S & P 500	Nifty
Bullish Indications	15	15
Bearish Indications	2	3
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty were up 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	UK – Employment data, GDP, CPI, BOE rate decision, Eurozone – CPI, US – GDP, 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 and the Nifty were up 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. 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 3180 (up) and 3155 (down) on the S & P 500 and 12150 (up) and 12000 (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.