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

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2382, -0.38%	Neutral	Neutral
Nifty	9428, 0.29%	Neutral **	Neutral
China Shanghai Index	3091, 0.23%	Neutral	Neutral
Gold	1254, 2.11%	Bullish	Bullish
WTIC Crude	50.67, 5.92%	Bullish	Bullish
Copper	2.58, 2.28%	Bullish	Bullish
Baltic Dry Index	956, -5.72%	Bearish	Bearish
Euro	1.121, 2.57%	Bullish	Bullish
Dollar/Yen	111.26, -1.84%	Bearish	Bearish
Dow Transports	8879, -1.35%	Bearish	Bearish
High Yield (ETF)	37.18, 0.24%	Neutral	Neutral
US 10 year Bond Yield	2.25%, -3.85%	Bullish	Bullish
Nyse Summation Index	467, -14.26%	Bearish	Neutral
US Vix	12.04, 15.77%	Bearish	Bearish
Skew	131	Neutral	Neutral
20 DMA, S and P 500	2388, Below	Bearish	Neutral
50 DMA, S and P 500	2370, Above	Bullish	Neutral
200 DMA, S and P 500	2257, Above	Bullish	Neutral
20 DMA, Nifty	9356, Above	Neutral	Bullish
50 DMA, Nifty	9213, Above	Neutral	Bullish
200 DMA, Nifty	8697, Above	Neutral	Bullish
India Vix	11.30, 6.35%	Neutral	Bearish
Dollar/Rupee	64.50, 0.54%	Neutral	Bearish
Overall	S & P 500	Nifty
Bullish Indications	7	8
Bearish Indications	6	6
Outlook	Bullish	Bullish
Observation	The S and P 500 was down and the Nifty was up slightly last week. Indicators mildly bullish. The market is repeatedly failing at resistance. Time to watch those stops.
On the Horizon	Japan – Kuroda speeches, CPI, UK – GDP, U.S – FOMC minutes, Trade balance, Durable goods, GDP, Canada – Rate decision, Euro Zone - Draghi 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 was down and the Nifty was up last week. Signals are mildly bullish for the upcoming week. Past and future FED rate hikes are yet to be priced in and sentiment indicators are back in complacency mode. Market internals, the transports and commodities are flashing major warning signs of a large decline ahead. The critical levels to watch are 2390 (up) and 2370 (down) on the S & P and 9500 (up) and 9350 (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.