Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning December 12

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2260, 3.08%	Bullish	Bullish
Nifty	8262, 2.16%	Neutral**	Bullish
China Shanghai Index	3233, -0.34%	Neutral	Neutral
Gold	1162, -1.35%	Bearish	Bearish
WTIC Crude	51.50, -0.35%	Neutral	Neutral
Copper	2.65, 0.86%	Bullish	Bullish
Baltic Dry Index	1090, -9.02%	Bearish	Bearish
Euro	1.056, -1.06%	Bearish	Bearish
Dollar/Yen	115.31, 1.56%	Bullish	Bullish
Dow Transports	9407, 3.96%	Bullish	Bullish
High Yield (ETF)	36.46, 1.25%	Bullish	Bullish
US 10 year Bond Yield	2.46%, 3.10%	Bearish	Bearish
Nyse Summation Index	345, 213.81%	Bullish	Neutral
US Vix	11.75, -16.78%	Bullish	Bullish
20 DMA, S and P 500	2201, Above	Bullish	Neutral
50 DMA, S and P 500	2164, Above	Bullish	Neutral
200 DMA, S and P 500	2118, Above	Bullish	Neutral
20 DMA, Nifty	8119, Abve	Neutral	Bullish
50 DMA, Nifty	8422, Below	Neutral	Bearish
200 DMA, Nifty	8189, Above	Neutral	Bullish
India Vix	15.07, -15.98%	Neutral	Bullish
Dollar/Rupee	67.46, -0.84%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	11	10
Bearish Indications	4	6
Outlook	Bulllish	Bearish
Observation	The S and P 500 and the Nifty rallied last week. Indicators are bullish. The Trump bounce has extended into way over bought territory. Time to watch those stops.
On the Horizon	Australia – Employment data, Euro zone – ZEW survey, U.S – Retail sales, FOMC rate decision, CPI, UK – CPI, Rate decision, Switzerland – Rate decsion
*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 rallied last week. Signals are bullish for the upcoming week. A FED rate hike is yet to be priced in and sentiment indicators are back in complacent mode. The big frenzy up has begun with a positive Dow Theory conformation. Bond yields have made a dramatic surge up and risky segments of the market like emerging markets are under performing on broad dollar strength. The critical levels to watch are 2270 (up) and 2250 (down) on the S & P and 8300 (up) and 8200 (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. Love your thoughts and feedback.