Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning September 16

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	3007, 0.96%	Bullish	Bullish
Nifty	11076, 1.18%	Neutral **	Bullish
China Shanghai Index	3031, 1.05%	Bullish	Bullish
Gold	1496, -1.29%	Bearish	Bearish
WTIC Crude	54.80, -3.04%	Bearish	Bearish
Copper	2.70, 2.66%	Bullish	Bullish
Baltic Dry Index	2312, -6.09%	Bearish	Bearish
Euro	1.1075, 0.42%	Neutral	Neutral
Dollar/Yen	108.09, 1.08%	Bullish	Bullish
Dow Transports	10814, 4.96%	Bullish	Bullish
High Yield (Bond)	108.75, -0.07%	Neutral	Neutral
US 10 year Bond Yield	1.90%, 21.84%	Bearish	Bearish
Nyse Summation Index	696, 52.43%	Bullish	Neutral
US Vix	13.74, -8.40%	Bullish	Bullish
Skew	118	Neutral	Neutral
20 DMA, S and P 500	2933, Above	Bullish	Neutral
50 DMA, S and P 500	2950, Above	Bullish	Neutral
200 DMA, S and P 500	2819, Above	Bullish	Neutral
20 DMA, Nifty	10968, Above	Neutral	Bullish
50 DMA, Nifty	11205, Below	Neutral	Bearish
200 DMA, Nifty	11223, Below	Neutral	Bearish
India Vix	14.12, -13.24%	Neutral	Bullish
Dollar/Rupee	70.99, -0.92%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	10	10
Bearish Indications	4	6
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty rallied 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	US – FOMC rate decision, UK - CPI, BOE rate decision, Eurozone – CPI, Japan - BOJ rate decision
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Stock charts, investing.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 and the Nifty rallied last week. Indicators are bullish for the upcoming week. QE forever from the FED is about to trigger the deflationary collapse of the century and we have likely made another major top in global equity markets and are failing at resistance. The market has established a major top with non-conformations from the transports, other global indices and commodities and a massive drop in the S and P 500 looks imminent. I don’t buy into the reflation trade for a minute. 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 Hindenburg omens. 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 3020 (up) and 2995 (down) on the S & P 500 and 11150 (up) and 11000 (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.

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning September 09

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2979, 1.79%	Bullish	Bullish
Nifty	10946, -0.70%	Neutral **	Bearish
China Shanghai Index	3000, 3.93%	Bullish	Bullish
Gold	1515, -1.48%	Bearish	Bearish
WTIC Crude	56.70, 3.47%	Bullish	Bullish
Copper	2.63, 3.10%	Bullish	Bullish
Baltic Dry Index	2462, 3.53%	Bullish	Bullish
Euro	1.1030, 0.35%	Neutral	Neutral
Dollar/Yen	106.92, 0.57%	Bullish	Bullish
Dow Transports	10303, 1.74%	Bullish	Bullish
High Yield (Bond)	108.83, 0.01%	Neutral	Neutral
US 10 year Bond Yield	1.56%, 4.07%	Bearish	Bearish
Nyse Summation Index	457, 46.23%	Bullish	Neutral
US Vix	15.00, -20.97%	Bullish	Bullish
Skew	119	Neutral	Neutral
20 DMA, S and P 500	2905, Above	Bullish	Neutral
50 DMA, S and P 500	2947, Above	Bullish	Neutral
200 DMA, S and P 500	2810, Above	Bullish	Neutral
20 DMA, Nifty	10959, Below	Neutral	Bearish
50 DMA, Nifty	11270, Below	Neutral	Bearish
200 DMA, Nifty	11216, Below	Neutral	Bearish
India Vix	16.28, -0.05%	Neutral	Neutral
Dollar/Rupee	71.65, 0.27%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	12	8
Bearish Indications	2	6
Outlook	Bullish	Bullish
Observation	The S and P 500 was up and the Nifty fell 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	US – PPI, CPI, UK-GDP, Employment data, Eurozone – ECB rate decision, Japan - GDP
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Stock charts, investing.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 was up and the Nifty fell last week. Indicators are bullish for the upcoming week. QE forever from the FED is about to trigger the deflationary collapse of the century and we have likely made another major top in global equity markets and are failing at resistance. The market has established a major top with non-conformations from the transports, other global indices and commodities and a 200 point drop in the S and P 500 looks imminent. 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 Hindenburg omens. 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 2990 (up) and 2970 (down) on the S & P 500 and 110500 (up) and 10850 (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.