Daily Market Insight

Here is your daily insight from global financial markets. Today's post is an aggregate of interesting news and views form the Stock, FOREX and Commodity markets and the Economy:

Daily Market Insight

Here is your daily insight from global financial markets. Today's post is an aggregate of interesting news and views form the Stock, FOREX and Commodity markets and the Economy:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning June 12

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2432, -0.30%	Neutral	Neutral
Nifty	9668, 0.15%	Neutral **	Neutral
China Shanghai Index	3158, 1.70%	Bullish	Bullish
Gold	1271, -0.69%	Bearish	Bearish
WTIC Crude	45.83, -3.84%	Bearish	Bearish
Copper	2.65, 2.91%	Bullish	Bullish
Baltic Dry Index	849, 2.29%	Bullish	Bullish
Euro	1.1200, -0.77%	Bearish	Bearish
Dollar/Yen	110.28, -0.12%	Neutral	Neutral
Dow Transports	9328, -0.04%	Neutral	Neutral
High Yield (ETF)	37.13, -0.40%	Neutral	Neutral
US 10 year Bond Yield	2.20%, 1.85%	Bearish	Bearish
Nyse Summation Index	598, 2.59%	Bullish	Neutral
US Vix	10.70, 9.74%	Bearish	Bearish
Skew	131	Neutral	Neutral
20 DMA, S and P 500	2409, Above	Bullish	Neutral
50 DMA, S and P 500	2386, Above	Bullish	Neutral
200 DMA, S and P 500	2274, Above	Bullish	Neutral
20 DMA, Nifty	9552, Above	Neutral	Bullish
50 DMA, Nifty	9371, Above	Neutral	Bullish
200 DMA, Nifty	8768, Above	Neutral	Bullish
India Vix	10.86, 0.50%	Neutral	Bearish
Dollar/Rupee	64.37, 0.18%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	7	6
Bearish Indications	5	6
Outlook	Bullish	Neutral
Observation	The S and P 500 fell and the Nifty made new highs last week. Indicators are mixed. The market reversed at new highs. Time to tighten those stops.
On the Horizon	China – Industrial production, Japan – Rate decision, Australia – Employment data, New Zealand - GDP, Euro Zone – German ZEW Sentiment, CPI, Switzerland – Rate decision, UK – CPI, Employment data, Retail sales, Rate decision, Russia – Rate decision, U.S – PPI, CPI, Retail sales, FOMC rate decision, Oil inventories
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, investing.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 fell and the Nifty made new highs last week. Signals are mixed for the upcoming week. Past and future FED rate hikes are yet to be priced in and sentiment indicators are back in complacency mode. Market internals, the transports and commodities are flashing major warning signs of a large decline ahead. Friday’s reversal suggests this could be imminent. The critical levels to watch are 2440 (up) and 2420 (down) on the S & P and 9750 (up) and 9550 (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.