Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning September 18

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2500, 1.58%	Bullish	Bullish
Nifty	10085, 1.52%	Neutral **	Bullish
China Shanghai Index	3353, -0.35%	Neutral	Neutral
Gold	1325, -1.92%	Bearish	Bearish
WTIC Crude	49.89, 5.08%	Bullish	Bullish
Copper	2.95, -3.04%	Bearish	Bearish
Baltic Dry Index	1361, 5.02%	Bullish	Bullish
Euro	1.1945, -0.75%	Bearish	Bearish
Dollar/Yen	110.88, 2.85%	Bullish	Bullish
Dow Transports	9546, 1.73%	Bullish	Bullish
High Yield (ETF)	37.17, 0.65%	Bullish	Bullish
US 10 year Bond Yield	2.20%, 6.84%	Bearish	Bearish
Nyse Summation Index	536, 54.40%	Bullish	Neutral
US Vix	10.17, -16.09%	Bullish	Bullish
Skew	145	Bearish	Bearish
20 DMA, S and P 500	2463, Above	Bullish	Neutral
50 DMA, S and P 500	2462, Above	Bullish	Neutral
200 DMA, S and P 500	2375, Above	Bullish	Neutral
20 DMA, Nifty	9927, Above	Neutral	Bullish
50 DMA, Nifty	9917, Above	Neutral	Bullish
200 DMA, Nifty	9187, Above	Neutral	Bullish
India Vix	11.68, -9.91%	Neutral	Bullish
Dollar/Rupee	64.13, 0.26%	Neutral	Neutral
Overall	S & P 500	Nifty
Bullish Indications	11	11
Bearish Indications	5	6
Outlook	Bullish	Bullish
Observation	The S and P 500 made a new high and the rallied last week. Indicators are bullish. The market is topping. Time to tighten those stops.
On the Horizon	New Zealand – GDP, UK – Retail sales, Euro Zone – CPI, German ZEW economic sentiment, German PMI, U.S – Home sales, Oil inventories, FOMC rate decision, Canada – CPI, Retail sales
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, investing.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 made a new high and the Nifty moved up last week. Signals are bullish for the upcoming week. The markets are still trading at 3 standard deviations above their long term averages from which corrections usually result. The critical levels to watch are 2510 (up) and 2490 (down) on the S & P and 10150 (up) and 10000 (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.