Chart of the Day - Time Taken to Reach Prior Highs

The chart of the day is courtesy Mark Hulbert via Marketwatch.com and shows the time taken for the Dow Jones Industrial Average to reach prior highs since the early 1900's. The current market has spent more than a year in trying to reach its prior high and has taken over 410 days to reach recent new highs, eclipsing the 379 days it took in the bull market correction of the 1990's making further new highs more and more elusive:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning May 30

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2099, 2.28%	Bullish	Bullish
Nifty	8157, 5.25%	Neutral**	Bullish
China Shanghai Index	2821, -0.16%	Neutral	Neutral
Gold	1215,-3.00%	Bearish	Bearish
WTIC Crude	49.56, 2.23%	Bullish	Bullish
Copper	2.11, 2.65%	Bullish	Bullish
Baltic Dry Index	606, -3.04%	Bearish	Bearish
Euro	1.119, -0.25%	Neutral	Neutral
Dollar/Yen	110.34, 0.18%	Neutral	Neutral
Dow Transports	7772, 1.31%	Bullish	Bullish
High Yield (ETF)	35.27, 0.80%	Bullish	Bullish
US 10 year Bond Yield	1.85%, 0.11%	Neutral	Neutral
Nyse Summation Index	732, 1.16%	Bullish	Neutral
US Vix	13.12, -13.68%	Bullish	Bullish
20 DMA, S and P 500	2064, Above	Bullish	Neutral
50 DMA, S and P 500	2066, Above	Bullish	Neutral
200 DMA, S and P 500	2011, Above	Bullish	Neutral
20 DMA, Nifty	7842, Above	Neutral	Bullish
50 DMA, Nifty	7769, Above	Neutral	Bullish
200 DMA, Nifty	7786, Above	Neutral	Bullish
India Vix	15.26, -7.09%	Neutral	Bullish
Dollar/Rupee	67.03, -0.60%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	10	12
Bearish Indications	2	2
Outlook	Bullish	Bullish
Observation	The Sand P 500 and the Nifty rallied strong last week. Indicators are bullish. Markets are challenging resistance again. Time to tighten those stops.
On the Horizon	China –PMI, Australia – GDP, Euro Zone –German CPI, Employment data, Euro zone CPI, ECB rate decision, Switzerland – GDP,  U.S – ISM, Personal consumption expenditure, Consumer confidence, Employment data, Canada – GDP
*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 Sand P 500 and the Nifty rallied big last week. Signals are bullish for the upcoming week. The Vix is suggesting complacency. The markets are back at resistance and are likely to continue major breakdowns in 2016 after this rally concludes. The critical levels to watch are 2110 (up) and 2080 (down) on the S & P and 8200 (up) and 8100 (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.

Interesting Jim Rogers Interview

A very interesting interview that legendary investor Jim Rogers did recently where he discusses an imminent global recession:

Chart of the Day - Bradley Siderograph

The chart if the day is the Bradley Siderograph via kirklindstrom.com and serves as an useful tool to detect trend changes in the market. It doesn't indicate market direction but can be used to identify key inflection points. It is better used in conjunction with other indicators than in isolation. The key dates for 2016 are shown below:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning May 23

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2052, 0.28%	Neutral	Neutral
Nifty	7750, -0.83%	Neutral**	Bearish
China Shanghai Index	2826, -0.06%	Neutral	Neutral
Gold	1253,-1.68%	Bearish	Bearish
WTIC Crude	48.48, 3.08%	Bullish	Bullish
Copper	2.06, -1.03%	Bearish	Bearish
Baltic Dry Index	625, 4.17%	Bullish	Bullish
Euro	1.120, -0.92%	Bearish	Bearish
Dollar/Yen	110.12, 1.40%	Bullish	Bullish
Dow Transports	7672, 2.19%	Bullish	Bullish
High Yield (ETF)	34.99, 0.55%	Bullish	Bullish
US 10 year Bond Yield	1.85%, 8.45%	Bearish	Bearish
Nyse Summation Index	723, -21.56%	Bearish	Neutral
US Vix	15.20, 1.06%	Bearish	Bearish
20 DMA, S and P 500	2065, Below	Bearish	Neutral
50 DMA, S and P 500	2061, Below	Bearish	Neutral
200 DMA, S and P 500	2011, Above	Bullish	Neutral
20 DMA, Nifty	7835, Below	Neutral	Bearish
50 DMA, Nifty	7726, Above	Neutral	Bullish
200 DMA, Nifty	7799, Below	Neutral	Bearish
India Vix	16.42, -3.37%	Neutral	Bullish
Dollar/Rupee	67.43, 0.79%	Neutral	Bearish
Overall	S & P 500	Nifty
Bullish Indications	6	7
Bearish Indications	8	9
Outlook	Bearish	Bearish
Observation	The Sand P 500 was relatively unchanged and the Nifty fell last week. Indicators are bearish. Markets are breaking down from resistance. Time to tighten those stops as downside has resumed.
On the Horizon	Japan – CPI, England – GDP, U.S – durable goods, GDP, Canada – Rate decision
*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 Sand P 500 was unchanged and the Nifty fell last week. Signals are bearish for the upcoming week. The Vix is suggesting complacency. The markets are breaking down from resistance and are likely to continue major breakdowns in 2016 as the recent rally appears to have concluded. A big move is imminent.  The critical levels to watch are 2060 (up) and 2040 (down) on the S & P and 7800 (up) and 7700 (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.