Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning February 03

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	3226, -2.12%	Bearish	Bearish
Nifty	11662, -4.79%	Neutral **	Bearish
China Shanghai Index	2977, 0.00%	Neutral	Neutral
Gold	1588, 1.02%	Bullish	Bullish
WTIC Crude	51.62, -1.88%	Bearish	Bearish
Copper	2.51, -4.52%	Bearish	Bearish
Baltic Dry Index	487, -12.57%	Bearish	Bearish
Euro	1.1093, 0.62%	Bullish	Bullish
Dollar/Yen	108.39, -0.81%	Bearish	Bearish
Dow Transports	10567, -4.46%	Bearish	Bearish
High Yield (Bond)	109.04, -0.24%	Neutral	Neutral
US 10 year Bond Yield	1.51%, -7.60%	Bullish	Bullish
Nyse Summation Index	718, -24.57%	Bearish	Neutral
US Vix	18.84, 29.40%	Bearish	Bearish
Skew	136	Neutral	Neutral
20 DMA, S and P 500	3279, Below	Bearish	Neutral
50 DMA, S and P 500	3211, Above	Bullish	Neutral
200 DMA, S and P 500	3012, Above	Bullish	Neutral
20 DMA, Nifty	12176, Below	Neutral	Bearish
50 DMA, Nifty	12132, Below	Neutral	Bearish
200 DMA, Nifty	11655, Above	Neutral	Bullish
S & P 500 P/E	24.27	Bearish	Neutral
Nifty P/E	25.75	Neutral	Bearish
India Vix	16.84, 8.19%	Neutral	Bearish
Dollar/Rupee	71.56, 0.32%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	5	4
Bearish Indications	10	12
Outlook	Bearish	Bearish
Observation	The S and P 500 and the Nifty were down last week. Indicators are bearish for the week. The markets are on the verge of a great depression style collapse. Watch those stops.
On the Horizon	US – Employment data, India – RBI 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 down last week. Indicators are bearish 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. Insane valuations continue. The breakdown in crude is a likely a precursor to a massive drop in the S and P 500. The recent virus epidemic in China is likely to usher in a recession much faster than most think. 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 3240 (up) and 3215 (down) on the S & P 500 and 11750 (up) and 11600 (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.