Chart of the Week - BOJ Stock Market Casino

The chart of the week is courtesy Doug Wakefield via Safe Haven and shows that the Bank of Japan (BOJ) is a top 10 share holder in about 90% of the Nikkei 225. This after the Nikkei has been down nearly 60% since its highs in 1989. After multiple QE's that have failed to stimulate the economy and get rid of the deflationary negative interest rate scenario in Japan, this latest move by the BOJ has failure written all over it. Another down move in the Nikkei from a strengthening Yen could prove to be problematic for the BOJ going forward.

Daily Market Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the Japanese Nikkei 225 Index:

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the US Dollar and the British Pound:

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the US Dollar:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning August 29

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2169, -0.68%	Bearish	Bearish
Nifty	8573, -1.09%	Neutral**	Bearish
China Shanghai Index	3070, -1.22%	Bearish	Bearish
Gold	1326, -1.51%	Bearish	Bearish
WTIC Crude	47.64, -2.99%	Bearish	Bearish
Copper	2.08, -3.81%	Bearish	Bearish
Baltic Dry Index	720, 5.42%	Bullish	Bullish
Euro	1.120, -1.13%	Bearish	Bearish
Dollar/Yen	101.77, 1.62%	Bullish	Bullish
Dow Transports	7825, -1.33%	Bearish	Bearish
High Yield (ETF)	36.54, 0.00%	Neutral	Neutral
US 10 year Bond Yield	1.64%, 3.61%	Bearish	Bearish
Nyse Summation Index	879, -11.42%	Bearish	Neutral
US Vix	13.65, 20.37%	Bearish	Bearish
20 DMA, S and P 500	2178, Below	Bearish	Neutral
50 DMA, S and P 500	2144, Above	Bullish	Neutral
200 DMA, S and P 500	2052, Above	Bullish	Neutral
20 DMA, Nifty	8630, Below	Neutral	Bearish
50 DMA, Nifty	8482, Above	Neutral	Bullish
200 DMA, Nifty	7890, Above	Neutral	Bullish
India Vix	13.57, -6.66%	Neutral	Bullish
Dollar/Rupee	67.16, 0.05%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	4	5
Bearish Indications	11	11
Outlook	Bearish	Bearish
Observation	The S and P 500 and the Nifty fell last week. Indicators are bearish. Markets are breaking down from the top of their recent trading ranges. Time to tighten those stops.
On the Horizon	China – PMI, Canada - GDP, Euro zone – German employment data, CPI, Euro Zone CPI, U.S – Consumer confidence, Employment data, ISM
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, dailyfx.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 and the Nifty fell last week. Signals are bearish for the upcoming week. The Vix is suggesting complacency despite the market making nominal new highs and momentum, breadth and sentiment indicators are showing divergences.  The markets are likely to continue major breakdowns in 2016 which could start any moment now. The critical levels to watch are 2180 (up) and 2160 (down) on the S & P and 8650 (up) and 8500 (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.

Key Markets Ahead of Jackson Hole

The anticipation has been building up as we head into Jackson Hole to hear from the Fed. Risk appetite has been fading. Here is a look at some key markets from the currency strategists at dailyfx as we head into the big event:

S & P 500 Daily Outlook

Here is a daily view on the US stock market S and P 500 index from the analysts at Financial Doors. It covers the fundamentals and technicals of the S and P 500 index along with some of the key economic news of the day.

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the Kiwi Dollar:

Chart of the Week - S & P 500 real sales growth

The chart of the week is via multpl.com and tracks real sales growth of the S & P 500 companies. Real sales growth as measured by the annual change in sales adjusted for inflation entered negative territory in 2015 and continues to remain so. The last time this occurred was in 2009. Will there be a similar price adjustment to reflect the declining fundamentals?

Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the S & P 500 and the Yen:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning August 22

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2184, -0.01%	Neutral	Neutral
Nifty	8667, -0.05%	Neutral**	Neutral
China Shanghai Index	3108, 1.88%	Bullish	Bullish
Gold	1346, 0.22%	Neutral	Neutral
WTIC Crude	49.11, 10.38%	Bullish	Bullish
Copper	2.17, 1.26%	Bullish	Bullish
Baltic Dry Index	683, 1.79%	Bullish	Bullish
Euro	1.133, 1.40%	Bullish	Bullish
Dollar/Yen	100.19, -1.04%	Bearish	Bearish
Dow Transports	7930, 1.58%	Bullish	Bullish
High Yield (ETF)	36.54, 0.25%	Neutral	Neutral
US 10 year Bond Yield	1.58%, 4.16%	Bearish	Bearish
Nyse Summation Index	992, -6.87%	Bearish	Neutral
US Vix	11.34, -1.82%	Bullish	Bullish
20 DMA, S and P 500	2176, Above	Bullish	Neutral
50 DMA, S and P 500	2135, Above	Bullish	Neutral
200 DMA, S and P 500	2050, Above	Bullish	Neutral
20 DMA, Nifty	8628, Above	Neutral	Bullish
50 DMA, Nifty	8437, Above	Neutral	Bullish
200 DMA, Nifty	7876, Above	Neutral	Bullish
India Vix	14.54, 5.57%	Neutral	Bearish
Dollar/Rupee	67.12, 0.32%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	10	10
Bearish Indications	3	3
Outlook	Bullish	Bullish
Observation	The S and P 500 and the Nifty were unchanged last week. Indicators are bullish. Markets are at the top of their recent trading ranges. Time to tighten those stops.
On the Horizon	Japan – CPI, U.K – GDP, US – Durable Goods, Trade balance, GDP, Janet Yellen speech
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, dailyfx.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 and the Nifty were unchanged last week. Signals are bullish for the upcoming week. The Vix is suggesting complacency despite the market making nominal new highs and momentum, breadth and sentiment indicators are showing divergences.  The markets are likely to continue major breakdowns in 2016 after this rally concludes. The critical levels to watch are 2190 (up) and 2170 (down) on the S & P and 8750 (up) and 8550 (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.