Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning December 28

Indicator	Weekly Level / Change / Significance	Implication for S & P 500	Implication for Nifty*
S & P 500	2061, 2.76%	Bullish	Bullish
Nifty	7861, 1.28%	Neutral**	Bullish
China Shanghai Index	3613, 0.94%	Bullish	Bullish
Gold	1076, 0.96%	Bullish	Bullish
WTIC Crude	38.12, 6.39%	Bullish	Bullish
Copper	2.12, 0.64%	Bullish	Bullish
Baltic Dry Index	478, 0.21%	Neutral	Neutral
Euro	1.0965, 0.89%	Bullish	Bullish
Dollar/Yen	120.28, -0.78%	Bearish	Bearish
Dow Transports	7623, 3.51%	Bullish	Bullish
High Yield (ETF)	34.06, 1.40%	Bullish	Bullish
US 10 year Bond Yield	2.24%, 2.00%	Bearish	Bearish
Nyse Summation Index	-137, 43.89%	Bullish	Neutral
US Vix	15.74, -23.96%	Bullish	Bullish
20 DMA, S and P 500	2056, Above	Bullish	Neutral
50 DMA, S and P 500	2065, Below	Bearish	Neutral
200 DMA, S and P 500	2062, Below	Bearish	Neutral
20 DMA, Nifty	7792, Above	Neutral	Bullish
50 DMA, Nifty	7928, Below	Neutral	Bearish
200 DMA, Nifty	8212, Below	Neutral	Bearish
India Vix	13.74, -5.16%	Neutral	Bullish
Dollar/Rupee	65.95, -0.54%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	11	12
Bearish Indications	4	4
Outlook	Bullish	Bullish
Observation	The Sand P 500 and the Nifty were up last week. Indicators are bullish. Markets are back at resistance and the Vix is signaling complacency.
On the Horizon	China-PMI.
*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 the Nifty rallied last week. Signals are bullish for the upcoming week. The markets are back at resistance and are likely to correct with most emerging markets, and commodities already breaking down on a strong dollar and a hawkish FED.  The critical levels to watch are 2080 (up) and 2050 (down) on the S & P and 7900 (up) and 7800 (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 snapshots of the S and P 500 and Nifty Indices. Love your thoughts and feedback.