Chart of the Week - S & P 500 real sales growth

The chart of the week is via multpl.com and tracks real sales growth of the S & P 500 companies. Real sales growth as measured by the annual change in sales adjusted for inflation entered negative territory in 2015 and continues to remain so. The last time this occurred was in 2009. Will there be a similar price adjustment to reflect the declining fundamentals?

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the S & P 500 and the Yen:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning August 22

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2184, -0.01%	Neutral	Neutral
Nifty	8667, -0.05%	Neutral**	Neutral
China Shanghai Index	3108, 1.88%	Bullish	Bullish
Gold	1346, 0.22%	Neutral	Neutral
WTIC Crude	49.11, 10.38%	Bullish	Bullish
Copper	2.17, 1.26%	Bullish	Bullish
Baltic Dry Index	683, 1.79%	Bullish	Bullish
Euro	1.133, 1.40%	Bullish	Bullish
Dollar/Yen	100.19, -1.04%	Bearish	Bearish
Dow Transports	7930, 1.58%	Bullish	Bullish
High Yield (ETF)	36.54, 0.25%	Neutral	Neutral
US 10 year Bond Yield	1.58%, 4.16%	Bearish	Bearish
Nyse Summation Index	992, -6.87%	Bearish	Neutral
US Vix	11.34, -1.82%	Bullish	Bullish
20 DMA, S and P 500	2176, Above	Bullish	Neutral
50 DMA, S and P 500	2135, Above	Bullish	Neutral
200 DMA, S and P 500	2050, Above	Bullish	Neutral
20 DMA, Nifty	8628, Above	Neutral	Bullish
50 DMA, Nifty	8437, Above	Neutral	Bullish
200 DMA, Nifty	7876, Above	Neutral	Bullish
India Vix	14.54, 5.57%	Neutral	Bearish
Dollar/Rupee	67.12, 0.32%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	10	10
Bearish Indications	3	3
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty were unchanged last week. Indicators are bullish. Markets are at the top of their recent trading ranges. Time to tighten those stops.
On the Horizon	Japan – CPI, U.K – GDP, US – Durable Goods, Trade balance, GDP, Janet Yellen speech
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, dailyfx.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 and the Nifty were unchanged last week. Signals are bullish for the upcoming week. The Vix is suggesting complacency despite the market making nominal new highs and momentum, breadth and sentiment indicators are showing divergences.  The markets are likely to continue major breakdowns in 2016 after this rally concludes. The critical levels to watch are 2190 (up) and 2170 (down) on the S & P and 8750 (up) and 8550 (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. You can also check out support and resistance levels of the S and P 500 and Nifty Indices. Love your thoughts and feedback.