Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning August 15

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2184, 0.05%	Neutral	Neutral
Nifty	8672, -0.13%	Neutral**	Neutral
China Shanghai Index	3051, 2.49%	Bullish	Bullish
Gold	1343, -0.09%	Neutral	Neutral
WTIC Crude	44.49, 6.44%	Bullish	Bullish
Copper	2.14, -0.65%	Bearish	Bearish
Baltic Dry Index	671, 5.50%	Bullish	Bullish
Euro	1.117, 0.73%	Bullish	Bullish
Dollar/Yen	101.23, -0.59%	Bearish	Bearish
Dow Transports	7807, -0.75%	Bearish	Bearish
High Yield (ETF)	36.45, 1.14%	Bullish	Bullish
US 10 year Bond Yield	1.52%, -4.24%	Bullish	Bullish
Nyse Summation Index	1065, -3.39%	Bearish	Neutral
US Vix	11.55, 1.40%	Bearish	Bearish
20 DMA, S and P 500	2172, Above	Bullish	Neutral
50 DMA, S and P 500	2127, Above	Bullish	Neutral
200 DMA, S and P 500	2048, Above	Bullish	Neutral
20 DMA, Nifty	8603, Above	Neutral	Bullish
50 DMA, Nifty	8403, Above	Neutral	Bullish
200 DMA, Nifty	7868, Above	Neutral	Bullish
India Vix	13.77, -4.06%	Neutral	Bullish
Dollar/Rupee	66.91, 0.10%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	9	10
Bearish Indications	5	4
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 – GDP, Australia – Employment data New Zealand – Employment data, Euro Zone – ZEW sentiment survey, U.K – CPI, US – CPI, Canada - CPI
*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.