Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning October 31(Intra Week Update)

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2098, -1.34%	Bearish	Bearish
Nifty	8526, -1.30%	Neutral**	Bearish
China Shanghai Index	3103, -0.05%	Neutral	Neutral
Gold	1308, 2.46%	Bullish	Bullish
WTIC Crude	45.34, -6.90%	Bearish	Bearish
Copper	2.23, 1.69%	Bullish	Bullish
Baltic Dry Index	838, 5.01%	Bullish	Bullish
Euro	1.111, 1.02%	Bullish	Bullish
Dollar/Yen	103.82, -0.32%	Neutral	Neutral
Dow Transports	8026, 0.09%	Neutral	Neutral
High Yield (ETF)	35.75, -1.20%	Bearish	Bearish
US 10 year Bond Yield	1.80%, -2.49%	Bullish	Bullish
Nyse Summation Index	-170, -651.67%	Bearish	Neutral
US Vix	19.32, 19.33%	Bearish	Bearish
20 DMA, S and P 500	2137, Below	Bearish	Neutral
50 DMA, S and P 500	2151, Below	Bearish	Neutral
200 DMA, S and P 500	2081, Above	Bullish	Neutral
20 DMA, Nifty	8649, Below	Neutral	Bearish
50 DMA, Nifty	8705, Below	Neutral	Bearish
200 DMA, Nifty	8088, Above	Neutral	Bullish
India Vix	16.50, 12.63%	Neutral	Bearish
Dollar/Rupee	66.73, -0.09%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	6	6
Bearish Indications	7	8
Outlook	Bearish	Bearish
Observation	The S and P 500 and the Nifty fell last week. Indicators are bearish. Markets are breaking down again. Time to tighten those stops.
On the Horizon	Australia – AIG service index indicator, UK – Brexit trigger ruling, BOE rate decision, US – FOMC rate decision, ISM data
*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 slightly bearish for the upcoming week. Market momentum and breadth have been showing divergences for months now and sentiment indicators are still highly complacent and a big breakdown has likely started. Short term we are oversold but any oversold bounces may not last long. The critical levels to watch are 2110 (up) and 2090 (down) on the S & P and 8600 (up) and 8400 (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 stock market signals october 24 for a comparison. Love your thoughts and feedback.