Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning December 14

Indicator	Weekly Level / Change / Significance	Implication for S & P 500	Implication for Nifty*
S & P 500	2012, -3.79%	Bearish	Bearish
Nifty	7611, -2.20%	Neutral**	Bearish
China Shanghai Index	3435, -2.56%	Bearish	Bearish
Gold	1074, -1.11%	Bearish	Bearish
WTIC Crude	35.36, -11.91%	Bearish	Bearish
Copper	2.11, 1.81%	Bullish	Bullish
Baltic Dry Index	522, -7.28%	Bearish	Bearish
Euro	1.0995, 0.88%	Bullish	Bullish
Dollar/Yen	120.96, -1.76%	Bearish	Bearish
Dow Transports	7525, -5.41%	Bearish	Bearish
US 10 year Bond Yield	2.14%, -5.98%	Bullish	Bullish
Nyse Summation Index	-35, -113.64%	Bearish	Bearish
Junk Bonds (ETF)	33.69, -3.96%	Bearish	Bearish
US Vix	24.39, 64.69%	Bearish	Bearish
20 DMA, S and P 500	2070, Below	Bearish	Neutral
50 DMA, S and P 500	2056, Below	Bearish	Neutral
200 DMA, S and P 500	2063, Below	Bearish	Neutral
20 DMA, Nifty	7809, Below	Neutral	Bearish
50 DMA, Nifty	7980, Below	Neutral	Bearish
200 DMA, Nifty	8260, Below	Neutral	Bearish
India Vix	17.18, 6.82%	Neutral	Bearish
Dollar/Rupee	67.15, 0.76%	Neutral	Bearish
Overall	S & P 500	Nifty
Bullish Indications	3	3
Bearish Indications	13	16
Outlook	Bearish	Bearish
Observation	The Sand P 500 and the Nifty were down big last week. Indicators are bearish. Markets are oversold and may have a short term bounce but the trend is clearly down. Transports and the high yield market are flashing warning signs.
On the Horizon	Canada – CPI, New Zealand – GDP, China –Loan data, Japan – Tankan data, Euro Zone – ZEW sentiment survey, U.K – CPI, US – FOMC rate decision, CPI.
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, FXCM
**Neutral	Changes less than 0.5% are considered neutral

The US market and the Nifty fell hard last week. Signals are bearish for the upcoming week. The markets are oversold and are likely to continue to correct after an oversold bounce, with most emerging markets, and commodities already breaking down on a strong dollar and a hawkish FED.  Transports and the high yield market are signaling trouble ahead.  The Vix is implying a crash. The critical levels to watch are 2030 (up) and 2000 (down) on the S & P and 7700 (up) and 7500 (down) on the Nifty. A significant breach of the above levels could trigger the next big move in the markets very shortly. You can check out last week’s report for a comparison. You can also check out snapshots of the S and P 500 and Nifty Indices. Love your thoughts and feedback.