Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning June 29

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	3009, -2.86%	Bearish	Bearish
Nifty	10383, 1.35%	Neutral **	Bullish
China Shanghai Index	2980, 0.40%	Neutral	Neutral
Gold	1785, 1.81%	Bullish	Bullish
WTIC Crude	38.20, -3.90%	Bearish	Bearish
Copper	2.66, 1.69%	Bullish	Bullish
Baltic Dry Index	1738, 11.77%	Bullish	Bullish
Euro	1.1218, 0.37%	Neutral	Neutral
Dollar/Yen	107.23, 0.32%	Neutral	Neutral
Dow Transports	8806, -3.00%	Bearish	Bearish
High Yield (Bond ETF)	100.96, -2.04%	Bearish	Bearish
US 10 year Bond Yield	0.64%, -7.74%	Bullish	Bullish
Nyse Summation Index	826, -20.38%	Bearish	Neutral
US Vix	34.73, -1.11%	Bullish	Bullish
Skew	138	Neutral	Neutral
20 DMA, S and P 500	3107, Below	Bearish	Neutral
50 DMA, S and P 500	2980, Above	Bullish	Neutral
200 DMA, S and P 500	3021, Below	Bearish	Neutral
20 DMA, Nifty	10097, Above	Neutral	Bullish
50 DMA, Nifty	9577, Above	Neutral	Bullish
200 DMA, Nifty	10894, Below	Neutral	Bearish
S & P 500 P/E	21.57	Bearish	Neutral
Nifty P/E	26.67	Neutral	Bearish
India Vix	28.74, -4.10%	Neutral	Bullish
Dollar/Rupee	75.62, -0.84%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	6	10
Bearish Indications	8	6
Outlook	Bearish	Bullish
Observation	The S and P fell and the Nifty fell rallied week. Indicators are mixed for the week. The markets have begun a great depression style collapse. Watch those stops.
On the Horizon	US – Employment data, UK – GDP, Eurozone – CPI, German employment data,
*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 fell and the Nifty rallied last week. Indicators are mixed for the coming week, but the recent rally is coming to an end. After extreme euphoria for the indices a highly probable selloff to the 2700 area is emerging on the S and P, and 8500 should arrive on the Nifty in short order. The FED is repeating the Japan experiment and the lost 3 decades in Japan (1989-2019) is set to repeat across the globe. SPX 1500 and lower by year end and we stay there till 2050, scary? The markets are very close to an epic melt down and the SPX is headed way lower. The markets are overvalued, overbought and out of touch with economic realities. Long term, the epic meltdown is set to continue resulting in a 5 year plus bear market with lot lower levels maybe as low as 800 on the S and P. QE forever from the FED is about to trigger the deflationary collapse of the century and we have made a 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. High valuations continue. The breakdown in Crude and the Euro is a precursor to yet another massive drop in the S and P 500. The recent global virus epidemic (black swan) is likely to dent global GDP significantly and usher in a depression much faster than most think. The trend has changed from bullish to bearish and the markets are getting smashed by a strong dollar. Looking for significant under performance in the Nifty going forward on rapidly deteriorating macros. A 5 year deflationary wave has started in key asset classes like the Euro, stocks and commodities amidst a number of bearish divergences and over stretched valuations. We are entering 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 into a recession. The critical levels to watch for the week are 3020 (up) and 2995 (down) on the S & P 500 and 10450 (up) and 10300 (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. Here's the outlook from@JoeFriday_714:

JF's Sunday Morning Charts - a few charts to chew on for the coming week. 😎 (Full thread inside)#SPX Weekly - A break below the PRZ for C and LOB. pic.twitter.com/McfcxYgDxp

— JoeFriday714 (@joefriday_714) June 28, 2020