Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning January 20

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	3330, 1.97%	Bullish	Bullish
Nifty	12352, 0.78%	Neutral **	Bullish
China Shanghai Index	3076, -0.54%	Bearish	Bearish
Gold	1557, -0.18%	Neutral	Neutral
WTIC Crude	58.58, -0.78%	Bearish	Bearish
Copper	2.85, 1.17%	Bullish	Bullish
Baltic Dry Index	754, -2.58%	Bearish	Bearish
Euro	1.1091,- 0.28%	Neutral	Neutral
Dollar/Yen	110.15, 0.61%	Bullish	Bullish
Dow Transports	11279, 2.78%	Bullish	Bullish
High Yield (Bond)	110.17, 0.04%	Neutral	Neutral
US 10 year Bond Yield	1.83%, 0.30%	Neutral	Neutral
Nyse Summation Index	1001, 8.41%	Bullish	Neutral
US Vix	12.10, -3.66%	Bullish	Bullish
Skew	135	Neutral	Neutral
20 DMA, S and P 500	3254, Above	Bullish	Neutral
50 DMA, S and P 500	3177, Above	Bullish	Neutral
200 DMA, S and P 500	2994, Above	Bullish	Neutral
20 DMA, Nifty	12226, Above	Neutral	Bullish
50 DMA, Nifty	12092, Above	Neutral	Bullish
200 DMA, Nifty	11628, Above	Neutral	Bullish
S & P 500 P/E	25.04	Bearish	Neutral
Nifty P/E	28.61	Neutral	Bearish
India Vix	14.13, 0.36%	Neutral	Neutral
Dollar/Rupee	71.08, 0.17%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	9	9
Bearish Indications	4	4
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	Euro Zone – ECB rate decision, UK – Employment data, China – PBOC rate decision, Japan –BOJ rate decision,
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Stock charts, investing.com, multpl.com, nse
**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. Long term, 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 is likely. 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 3340 (up) and 3320 (down) on the S & P 500 and 12450 (up) and 12250 (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.